Written - Bringing Forward Capital Expenditure

On 2 December I published the Assembly Government’s Final Budget for 2009/10 and announced the first tranche of projects to be taken forward under the Strategic Capital Investment Framework (SCIF).

At that time, I also outlined the Assembly Government’s intention to bring forward capital expenditure to support the Welsh economy in these tough times, and indicated that more would be said at the Economic Summit today.

In line with this, I am today announcing the Assembly Government’s intention to bring forward £23 million of capital expenditure into the remainder of this financial year, focused on labour-intensive investment proposals – in line with discussions with our partners at the All-Wales Economic Summits. The additional capital expenditure this year is proposed to include:

• £9 million of the small capital works and refurbishment programmes carried out by Local Authorities, Further Education Institutions and Higher Education Institutions to be brought forward on projects to improve educational accommodation provided by schools, college and university buildings. It will also enable them to address any backlog of maintenance works planned for 2009-10 earlier.
• £10 million of Social Housing Grant to be brought forward to accelerate social housing programmes to help reduce the effects of the credit crunch to the construction sector as well as meeting housing need and working to meet the One Wales commitment of 6,500 affordable homes. An additional £2m will be brought forward for physical adaptations for vulnerable people; and
• £2m for further work on the Heads of the Valleys low carbon economy programme.

This investment will be funded from underspends in the current financial year coupled with bringing forward resources from future years. The necessary budget changes for 2008/09 will be enacted through a Supplementary Budget.

The capital expenditure announced today is in addition to the SCIF investment of around £50 million expected this financial year, of which around £30 million will have a direct economic impact in 2008/09 through projects to deliver affordable homes, capital investment in schools and other capital programmes.

The range of measures provided for in the Final Budget, the investment flowing from the SCIF and the announcement today on bringing forward capital expenditure will put more money into the Welsh economy and act to help people and companies through the tough economic conditions arising from the global downturn.  The Assembly Government will continue to work in partnership – in line with the collective aims agreed at previous Economic Summits – to maximise the benefit of every Welsh pound and thereby help people where it matters most.