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. 

Year

Public Sector Gross Investment - OBR forecast of Labour plans

Public Sector Gross Investment under the Conservative-led government

Difference

2010-11

£61.3bn

£58.1bn

£-3.2bn

2011-12

£50.7bn

£47.8bn

£-2.9bn

2012-13

£48.4bn

£41.7bn

£-6.7bn

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.

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Inside a shaken city: "I just want to be anywhere that’s not Manchester”

The morning after the bombing of the Manchester Arena has left the city's residents jumpy.

On Tuesday morning, the streets in Manchester city centre were eerily silent.

The commuter hub of Victoria Station - which backs onto the arena - was closed as police combed the area for clues, and despite Mayor Andy Burnham’s line of "business as usual", it looked like people were staying away.

Manchester Arena is the second largest indoor concert venue in Europe. With a capacity crowd of 18,000, on Monday night the venue was packed with young people from around the country - at least 22 of whom will never come home. At around 10.33pm, a suicide bomber detonated his device near the exit. Among the dead was an eight-year-old girl. Many more victims remain in hospital. 

Those Mancunians who were not alerted by the sirens woke to the news of their city's worst terrorist attack. Still, as the day went on, the city’s hubbub soon returned and, by lunchtime, there were shoppers and workers milling around Exchange Square and the town hall.

Tourists snapped images of the Albert Square building in the sunshine, and some even asked police for photographs like any other day.

But throughout the morning there were rumours and speculation about further incidents - the Arndale Centre was closed for a period after 11.40am while swathes of police descended, shutting off the main city centre thoroughfare of Market Street.

Corporation Street - closed off at Exchange Square - was at the centre of the city’s IRA blast. A postbox which survived the 1996 bombing stood in the foreground while officers stood guard, police tape fluttering around cordoned-off spaces.

It’s true that the streets of Manchester have known horror before, but not like this.

I spoke to students Beth and Melissa who were in the bustling centre when they saw people running from two different directions.

They vanished and ducked into River Island, when an alert came over the tannoy, and a staff member herded them through the back door onto the street.

“There were so many police stood outside the Arndale, it was so frightening,” Melissa told me.

“We thought it will be fine, it’ll be safe after last night. There were police everywhere walking in, and we felt like it would be fine.”

Beth said that they had planned a day of shopping, and weren’t put off by the attack.

“We heard about the arena this morning but we decided to come into the city, we were watching it all these morning, but you can’t let this stop you.”

They remembered the 1996 Arndale bombing, but added: “we were too young to really understand”.

And even now they’re older, they still did not really understand what had happened to the city.

“Theres nowhere to go, where’s safe? I just want to go home,” Melissa said. “I just want to be anywhere that’s not Manchester.”

Manchester has seen this sort of thing before - but so long ago that the stunned city dwellers are at a loss. In a city which feels under siege, no one is quite sure how anyone can keep us safe from an unknown threat

“We saw armed police on the streets - there were loads just then," Melissa said. "I trust them to keep us safe.”

But other observers were less comforted by the sign of firearms.

Ben, who I encountered standing outside an office block on Corporation Street watching the police, was not too forthcoming, except to say “They don’t know what they’re looking for, do they?” as I passed.

The spirit of the city is often invoked, and ahead of a vigil tonight in Albert Square, there will be solidarity and strength from the capital of the North.

But the community values which Mancunians hold dear are shaken to the core by what has happened here.

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