Local government is lining up capital projects which could be built relatively quickly, as the chancellor reportedly considers including a further fiscal stimulus modelled on the US ‘green new deal’.
The Local Government Association claimed this week that councils could create up to 150,000 jobs by investing in measures promoting a shift to a low-carbon economy, or to adapt their areas to inevitable climate change.
Measures that would ‘generate new jobs’ include projects to encourage low-carbon alternatives to the car for shorter trips, and investment in flood defences, according to the LGA.
The claim, which comes ahead of the spring Budget, follows mounting evidence that the £3bn extra for capital projects provided by the pre-Budget report would fail to plug the gap created by a 25% fall in investment by developers (Surveyor, 22 January).
The Liberal Democrats claim that the £12.5bn earmarked for the temporary VAT cut for 2009 would be better spent on capital projects, including new social housing, and to revive the axed Merseytram. Meanwhile, the Greater Manchester Passenger Transport Authority claimed that its aborted transport innovation fund package had produced ‘a library of well-developed schemes we are well placed to deliver quickly’.
Brian Smith, president of the County Surveyors’ Society (CSS), commented: ‘I am concerned that the stimulus may not be sufficient, given the very significant reduction in housing activity. I’d argue for more spend on infrastructure, particularly given the backlogs of investment.’
Smith said several local authorities were having to use prudential borrowing powers to make good the shortfall in developers’ contributions for infrastructure.
Councils are already bringing forward investment focused on reviving local economies. Glasgow City Council, for example, is to fund public realm improvements proposed for its rejected business improvement district.
Glasgow’s development and regeneration scrutiny committee heard there was a need for further investment to protect the city’s retail centre from loss of trade. The impact of footfall on sales will be monitored.
Councillor George Ryan, executive member for development and regeneration, said: ‘In these challenging economic times, and with the increasing competition from out-of-town shopping centres, we must strive to retain the city centre’s competitive edge, and its role as a provider of jobs and income generator for Glasgow.’
Meanwhile, the Environmental Industries Commission this week launched a ‘green jobs’ lobbying campaign, urging the prime minister, Gordon Brown, to use the 2009 Budget’s emergency spending measures to create more than 300,000 jobs in the UK.
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