The Government has launched an infrastructure plan it hopes will help unlock £200bn of mostly private sector money over the next five years.
In his Speech to the Confederation of British Industry this morning, Cameron announced the plan which outlines the challenge facing UK infrastructure and the major investments needed to underpin future growth.
Prime Minister David Cameron said: “There is one question I want to answer today. Where is the growth going to come from – where are the jobs going to come from?”
The Treasury estimate the plan will need £40bn of private investment per year with the Government supplying a quarter of the funding.
Treasury commercial secretary Lord Sasson says: “We recognise the scale of the challenge and the need to encourage new sources of private sector capital. We are targeting Government’s own investment at a series of bold and critical projects that go to the heart of this vision and support a private sector led recovery.”
£30bn of the public money going into the plan will go to investing in transport, including a high speed rail network, Crossrail and money for rail and road improvements.
Some Government spending is being focused in areas without a track record in the UK.
A £1bn Green Investment bank is hoped to encourage further private sector investment in the renewable sector, with £530m going to providing high speed broadband.
Sasson says: “The role of the Government is clear. It is to specify what infrastructure we need, identify the key barriers to achieving that investment and mobilise the resources, both public and private to make it happen.”
Cameron told the assembled business leaders that British business should have no more vocal champion than the British Government.
He said: “I have put the promotion of British commerce and international trade at the heart of our foreign and economic policy.”
He also said the Government would use all available policy levers to create the right framework for enterprise and investment and to make it easier for new companies to develop.
He said the coalition policies like cutting corporation tax from 24 to 28 per cent, funding 50,000 apprenticeships and reforming regulation reform would improve the economy.
He said: “Add to these our cut in the small business profit rates and the fact we have waived national insurance contributions for new businesses in most areas of the country and you have the conditions to breed confidence and boost creativity.”