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
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