No construction budget cuts, Brown promises

Prime Minister Gordon Brown and No10 officials have promised the construction industry that public sector projects worth billions of pounds are safe, despite this week's £500bn bank bail-out.

Speculation has been growing that as the government poured more cash into the UK's ailing financial system, spending on major projects like the £45bn Building Schools for the Future programme, as well as roads, hospitals and rail would suffer.

But CBI Construction Council chairman and Carillion chief executive John McDonough said that he has been assured by No10 officials that such schemes are safe, according to the Daily Mail.

McDonough said: "The government fully understands the importance of investing in the economy and they will do the right things for the country."

Meanwhile Prime Minister Gordon Brown reinforced the government's commitment to public projects yesterday when he appeared on GMTV to talk about the bank bail-out.

"You should know that the measures we are taking are not at the expense of better public services. Our commitment to our investment in schools and hospitals to ensuring fairness is as strong as ever," he said.