Press Release - New research reveals Government plans to spend £61bn on capital procurement

Tories likely to affect construction and property sectors with new
budget cuts, according to DeHavilland report

According to a recent report published by political intelligence firm DeHavilland, government departments will spend over £25bn on capital procurement projects throughout the UK this year (2009/2010).

The report findings also reveal each department’s budget for capital expenditure over the next three years.  By studying Departmental Expenditure Limits, also known as DELs, DeHavilland researchers have concluded that a total of £54.7bn is earmarked for construction, property and fixed asset procurement, a figure not readily available in any government published data.  “The Government makes this information very difficult to find.  Its presentation is often uncoordinated and very difficult to analyse and compare year on year” says Rob Jeffery, Political Analyst for DeHavilland and report author. 

Public sector capital spending, which includes expenditure on new build properties, improvements to existing ones, land purchases or any other fixed assets, has played an important part in the Labour government’s response to the economic downturn.  Consequently, some parts of the construction and property sectors have benefited from these economic stimulus programmes. 

However, the report goes on to study the implications of a change in spending policy under a new Tory government, department by department.  According to further report findings, projected budget cuts estimated at 10% between 2011 and 2015 for some departments is likely to mean capital procurement will be reined in.  The knock on affect will potentially affect the construction and property sectors, Jeffery points out.   “In these tough economic times it’s critical for organisations to know what future government investment programmes could look like, who’s involved and the likely implications for their business sustainability” advises Jeffery.

To download a free summary of DeHavilland’s latest report, "Analysis of Public Spending on Construction & Estates", visit www1.dehavilland.co.uk/spending.

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A copy of the full report is available to the press upon request

For further information, please contact:

Julie Williams, Marketing Executive, DeHavilland
Tel:  +44 (0) 20 7728 4437
Email:  julie.williams@emap.com

About DeHavilland:
DeHavilland provides leading organisations with political insight into the opportunities and threats posed by government legislation. DeHavilland delivers fast, accurate and tailored business critical information to key business professionals. Empowering organisations with the knowledge to effectively plan and implement their strategic objectives.