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Coalition split on capital spending

Coalition split on capital spending
A Coalition rift over capital spending emerged today after Nick Clegg claimed the Coalition should not have cut public investment as deeply as it did -

The Deputy Prime Minister told the House magazine there was "overwhelming" evidence of the benefits of investing in infrastructure.

"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,” Mr Clegg said.

But No 10 said the Prime Minister's view remains that the Government has made "the right decisions".

George Osborne this evening said he agreed with Mr Clegg that capital spending was "important".

"What Nick Clegg was saying, and I agree with him, is that capital spending is important," the Chancellor told Channel 4 News.

"e are actually spending £20bn more than Labour were going to spend if they had won that election, and we are taking a very deliberate choice, a choice that is controversial, to spend less on welfare, something opposed by our political opponents."

Green Box: Coalition split on capital spendingClick to open

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