An economic think tank has slammed Nick Clegg’s plan to give infrastructure a “new special priorty status” saying that it will not bring about growth.
The Institute of Economic Affairs, which has previously criticised the government’s High Speed 2 plans, said spend on infrastructure was a waste compared to other measures that could be taken.
“The government will not bring about growth through speeding up capital spending. If this is the extent of its strategy, we should not hold our breath waiting for improving economic forecasts any time soon,” IEA director general Mark Littlewood said.
“Boosting growth is a challenge, but it is also a choice. What is needed is a major programme of deregulation, making it easier for private businesses to flourish. The government should be slashing red tape, suspending – not increasing – the minimum wage, and being more radical in its proposed liberalisation of planning laws.“