Treasury releases £12bn for infrastructure investment

Contractors can expect an increase in order books after the Treasury today (Wednesday) released £12bn for infrastructure work across schools, hospitals, roads and housing stocks over the next three years.

The funds will be allocated in the new year once departments have published their investment strategies on what progress they have made and what asset management procedures they have in place.

Broken down further, the figures include:

• £3 billion for improved buildings and equipment for our schools.
• £2.5 billion for the NHS to modernise our hospitals and health care facilities.
• £2 billion to invest in transport infrastructure.
• £1 billion to improve our housing stock.

Chief secretary to the Treasury Paul Boateng warned that reform would have to accompany the cash.

"Since 1997, the government has been committed to reversing the legacy of under-investment in Britain's infrastructure. All that extra investment will be matched by reform to ensure that we get the most for the new money," he said.