Cuts Watch #73: the review of spending decisions

17 Jun 2010, by Richard Exell in Cuts Watch

This afternoon, Danny Alexander, the chief secretary to the Treasury, announced the results of the Treasury review of spending decisions made after 1 January.Adam reported on this review at the beginning of the month, but it is a side to the cuts that has been missed by most of the media commentators.

The headline is the cancellation of 12 projects worth £2bn, and the ‘suspension’ of another 12, worth £8.5bn. The single item that will get most coverage will be the cancellation of an £80m loan to Sheffield Forgemasters to build components for nuclear power stations. Being next door to Nick Clegg’s constituency will make Forgemasters very high-profile; Clegg has said that the loan was a “cynical ploy” by the last government – though there was never any hint that it would not be delivered.

Other projects that have been cancelled are:

• Department for Culture Media and Sport: Stonehenge Visitor Centre: £25m
• Communities and Local Government: Local Authority Leader Boards: £16m
• Business Innovation and Skills: Sheffield Forgemasters International Limited: £80m
• Department for Work and Pensions: Roll-out of the Future Jobs Fund: £290m*
• DWP: Six-month offer recruitment subsidies: £30m*
• DWP: Extension of Young Person’s Guarantee to 2011-12: £450m
• DWP: Two-year Jobseeker’s Guarantee: £515m
• Department of Health: Active Challenge Routes: Walk England: £2m
• DoH: County Sports Partnerships: £6m
• DoH: North Tees and Hartlepool hospital: £450m
• Local Government: Local Authority Business Growth Initiative (LABGI): £50m*
• Regional Development Agencies: Outukumpu: £13m

The ‘suspended’ projects are:

• Department for Culture Media and Sport: Libraries Modernisation Programme: £12m
• Communities and Local Government: Sheffield Retail Quarter: £12m
• CLG: Kent Thameside Strategic Transport Programme: £23m
• Business Innovation and Skills: University Enterprise Capital Fund: £25m
• BIS: Newton Scholarships: £25m
• Department of Health: Health Research Support Initiative: £73m
• DoH: Leeds Holt Park Well-being Centre: £50m
• Ministry of Justice: Birmingham Magistrates Court: £94m*
• Ministry of Defence: Successor Deterrent Extension to Concept Phase Long Lead Items: £66m
• MoD: Search and Rescue Helicopters: £4.7bn
• Department for Transport: Search and Rescue Helicopters – joint procurement with MoD: £2.3bn
• DfT: A14 road: £1.1bn

(* – cut that has already been announced)

We’ll provide more details as they become available.