Labour turns its guns on Osborne's infrastructure failures

New figures show that just seven of the 576 infrastructure projects planned by the coalition have been completed.

When Nick Clegg recently conceded that the coalition had cut infrastructure spending too fast after coming to power, he took care to assure us that all was now well. "I think we've all realised that you actually need, in order to foster a recovery, to try and mobilise as much public and private capital into infrastructure as possible," the Deputy PM said. 

While one welcomes the government's belated conversion to the merits of counter-cyclical spending (a rare concession to its Keynesian critics), the early results are not encouraging. Labour will use an opposition debate today to highlight new Treasury figures showing that just seven (1.2 per cent) of the 576 infrastructure projects planned by the coalition are "completed" or "operational" and that most of these are road schemes began under the last government. In addition, just 18.2 per cent of the projects are said to have "started" or to be "in construction" or "under construction".  

Clegg himself has previously expressed frustration over the timelag between projects being announced and completed. He remarked in a speech to the LSE in September 2011: "A key blockage is actually within government: Whitehall. Identifying projects and funnelling cash to them can take time – I understand that. These are big investments, and you have to get the detail right. But failure to deliver major infrastructure projects on time and on budget is a perennial problem in the UK."

The government's failure to improve its performance on this front is a matter of concern to the Lib Dems, with some blaming George Osborne's preference for Treasury "guarantees" over direct spending. In her column today, the Times's Rachel Sylvester reports that "Clegg and other senior Lib Dems are convinced that the Government needs to loosen the public purse strings and spend even more on infrastructure to stimulate the economy". 

After Clegg claimed that the coalition's capital spending cuts were "no more than what Alistair Darling spelt out anyway", Labour will also point to OBR figures (see below) showing that the government has spent £12.8bn less than Darling planned. 


Public Sector Gross Investment - OBR forecast of Labour plans

Public Sector Gross Investment under the Conservative-led government














The last time Rachel Reeves cited these figures, George Osborne accused her of "not being completely straight", a remark which earned him a rebuke from the Speaker. 

But even if one discounts the numbers for 2012-13 (which is still ongoing), the data shows that the coalition spent £6.1bn less in its first two years than Labour would have. Little wonder that the Lib Dems are urging Osborne to finally loosen the fiscal taps.

Shadow chancellor Ed Balls visits a social housing project with shadow chief secretary to the Treasury Rachel Reeves. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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The Fire Brigades Union reaffiliates to Labour - what does it mean?

Any union rejoining Labour will be welcomed by most in the party - but the impact on the party's internal politics will be smaller than you think.

The Fire Brigades Union (FBU) has voted to reaffiliate to the Labour party, in what is seen as a boost to Jeremy Corbyn. What does it mean for Labour’s internal politics?

Firstly, technically, the FBU has never affliated before as they are notionally part of the civil service - however, following the firefighters' strike in 2004, they decisively broke with Labour.

The main impact will be felt on the floor of Labour party conference. Although the FBU’s membership – at around 38,000 – is too small to have a material effect on the outcome of votes themselves, it will change the tenor of the motions put before party conference.

The FBU’s leadership is not only to the left of most unions in the Trades Union Congress (TUC), it is more inclined to bring motions relating to foreign affairs than other unions with similar politics (it is more internationalist in focus than, say, the PCS, another union that may affiliate due to Corbyn’s leadership). Motions on Israel/Palestine, the nuclear deterrent, and other issues, will find more support from FBU delegates than it has from other affiliated trade unions.

In terms of the balance of power between the affiliated unions themselves, the FBU’s re-entry into Labour politics is unlikely to be much of a gamechanger. Trade union positions, elected by trade union delegates at conference, are unlikely to be moved leftwards by the reaffiliation of the FBU. Unite, the GMB, Unison and Usdaw are all large enough to all-but-guarantee themselves a seat around the NEC. Community, a small centrist union, has already lost its place on the NEC in favour of the bakers’ union, which is more aligned to Tom Watson than Jeremy Corbyn.

Matt Wrack, the FBU’s General Secretary, will be a genuine ally to Corbyn and John McDonnell. Len McCluskey and Dave Prentis were both bounced into endorsing Corbyn by their executives and did so less than wholeheartedly. Tim Roache, the newly-elected General Secretary of the GMB, has publicly supported Corbyn but is seen as a more moderate voice at the TUC. Only Dave Ward of the Communication Workers’ Union, who lent staff and resources to both Corbyn’s campaign team and to the parliamentary staff of Corbyn and McDonnell, is truly on side.

The impact of reaffiliation may be felt more keenly in local parties. The FBU’s membership looks small in real terms compared Unite and Unison have memberships of over a million, while the GMB and Usdaw are around the half-a-million mark, but is much more impressive when you consider that there are just 48,000 firefighters in Britain. This may make them more likely to participate in internal elections than other affiliated trade unionists, just 60,000 of whom voted in the Labour leadership election in 2015. However, it is worth noting that it is statistically unlikely most firefighters are Corbynites - those that are will mostly have already joined themselves. The affiliation, while a morale boost for many in the Labour party, is unlikely to prove as significant to the direction of the party as the outcome of Unison’s general secretary election or the struggle for power at the top of Unite in 2018. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.