Business News
Britain set to announce infrastructure programme to boost economy
Nov 28, 2011, 15:48 GMT
London - The British government insisted Monday that there was 'no quick fix' to the country's debt problems, amid reports that a planned major infrastructure programme is to be financed with the help of foreign investors, including China.
George Osborne, the chancellor of the Exchequer, said Monday that the government would stick to its strict deficit reduction strategy and resist borrowing more money to get out of debt.
However, it was reported Monday that Osborne is looking to private investors and foreign sovereign wealth funds to raise money for infrastructure projects in an attempt to breathe new life into the stalling economy.
The Financial Times reported that Osborne is expected to announce an investment programme totalling 30 billion pounds (46.6 billion dollars) to improve rail and road links during a budget statement in parliament Tuesday.
Around 66 per cent of the money for the 10-year programme would be provided by pension funds and the remaining third could be raised through the China Investment Corporation (CIC), the paper said.
It is also expected that Osborne will have to downgrade government growth predictions for the next few years.
On Monday, the Paris-based Organization for Economic Cooperation and Development (OECD) predicted that Britain could be heading for a so-called double-dip recession, with the economy expected to grow by a mere 0.5 per cent in 2012.
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