Clegg wrong to claim Labour would have cut capital investment at same rate as government

OBR figures show Nick Clegg was wrong to claim Labour would have cut capital investment at the same rate as the government.

Graph 1: Capital Investment

Nick Clegg last week said the government was wrong to cut capital expenditure – claiming the reduction was in line with plans drawn up by the previous Labour government.

The latest figures from the Office for Budget Responsibility, however, show the coalition has spent £12.8 billion less in capital investment than Labour’s plans – eight per cent less than the plans they inherited.

See Graph 1:


Over the course of this parliament, they are set to have spent £7.3 billion less on capital investment than under Labour’s plans.

Clegg may have been correct in calling the cut in capital expenditure a mistake – but his attempt to play politics and suggest Labour would have done the same undermines that message.