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Public Sector: Investment

Volume 488: debated on Tuesday 24 February 2009

To ask the Chancellor of the Exchequer what steps his Department is taking to facilitate public sector capital investment projects facing delays due to the recent problems in the financial markets; and if he will make a statement. (255280)

The Government are on track to deliver total investment of over £50 billion in 2008-09. In addition, new arrangements have been put in place to make sure that the additional spending brought forward as part of the fiscal stimulus announced in November goes ahead.

PFI deals are still going ahead, but like all private sector investment projects, the global credit crunch is having an effect. The Government have been working for some time with individual projects to help them close and the measures the Treasury has already announced to support bank lending are intended to help anyone seeking finance.