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

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.

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