March 2011
The UK government’s budget for 2011, the details of which were announced on 23 March 2011, was hailed by the chancellor of the exchequer, the Rt Hon George Osborne MP, as a pro-growth package of measures designed to fundamentally reform the UK economy by boosting competitiveness and encouraging job creation.
Halcrow’s economics team, led by chief economist Andrew Price, has undertaken an in-depth analysis of the measures that have been announced and has examined the impact on the infrastructure sector.
Commenting on the chancellor’s budget statement, Andrew said: “On balance this is a budget that is relatively good for business. The chancellor has introduced a raft of measures to simplify tax and encourage employment, although questions remain over whether enterprise zones, a key part of the 'big society' agenda can provide value for money.
“However, there was somewhat of a mismatch between the budget, which was heralded as a platform for growth, and the UK’s economic forecasts which were revised down both for 2011 (from 2.1 per cent to 1.7 per cent) and 2012.
“The announcement that the Green Investment Bank will open a year early in 2012 is welcome. However the chancellor’s acknowledgement that the new investment bank will be unable to borrow until 2015 is a major blow to green groups and those arguing for accelerated infrastructure investment. But it is also clear that the UK’s decision to be the first country to introduce a carbon floor price will encourage the move to a low energy economy.”
A copy of Halcrow’s analysis can be downloaded from our economics and business solutions blog site on halcrow.com. Click here to view the blog, access our report and have your say.