After Labour's scorched earth policies.

Government axes 12 capital projects worth £2bn

Published:  18 June, 2010

UK: Capital projects worth billions of pounds were cancelled or suspended by ministers today Matt Hobley and Chris Smith report.

Treasury Chief Secretary Danny Alexander told MPs that the last government had committed money "it simply did not have", irresponsibly raising the hopes of many communities.

In a statement to the House, he said ministers were immediately cancelling 12 projects, which would have cost nearly £2bn, including the anticipated cull of the local authority business growth initiative (LAGBI).

The Government will also dismantle the funding and powers of regional local authority leaders' boards in a bid to save £16m a year.

The boards took over most of the functions and staff of the old regional assemblies.

Communities secretary Eric Pickles claimed they were part of "complex and confusing" regime of regional spatial strategies which wrested powers on transport, housing and planning powers away from local councils.

Suspended projects include the Kent Thameside Strategic Transport Programme, valued at £23m, and the Sevenstone Sheffield retail quarter regeneration project, pending a review of whether the scheme could deliver better value for money and a clearer assessment of risks.

"We have also found another spending black-hole in the previous government's plans –projects had been approved with no money in place to pay for them," Mr Alexander added.

"I am determined to deal with this problem head-on and ensure we never see this kind of irresponsible financial planning in government again."

The full list of cancelled projects:

Stonehenge Visitor Centre: £25m

Local Authority Leader Boards: £16m

Sheffield Forgemasters International: £80m

Roll-out of the Future Jobs Fund: £290m

Six-month offer recruitment subsidies: £30m

Extension of Young Person's Guarantee to 2011-12: £450m

Two-year Jobseeker's Guarantee: £515m

Active Challenge Routes - Walk England: £2m

County Sports Partnerships: £6m

North Tees and Hartlepool hospital: £450m


Local Authority Business Growth Initiative: £50m

Outukumpu: £13m

List of projects suspended:


Libraries' Modernisation Programme: £12m

Sheffield Retail Quarter: £12m

Kent Thameside Strategic Transport Programme: £23m

University Enterprise Capital Fund: £25m

Newton Scholarships: £25m

Health Research Support Initiative: £73m

Leeds Holt Park Well-being Centre: £50m

Birmingham Magistrates Court: £94m

Successor Deterrent Extension to Concept Phase Long Lead Items: £66m

Search and Rescue Helicopters: £4.6bn

A14 Road: £1.1bn

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