Mandelson announces plans for economic growth

7 Jan 10
Lord Mandelson has published the government’s strategy for economic growth, pledging investment in infrastructure and in sustainable and communications technologies

By David Williams

7 January 2010

Lord Mandelson has published the government’s strategy for economic growth, pledging investment in infrastructure and in sustainable and communications technologies.

 In Going for growth, published today, the business secretary emphasises that expanding the economy is as vital as reducing the budget deficit.

 Mandelson has also announced £70m in new money for three new manufacturing research centres based at universities, which will focus on fibre optics, regenerative medicine and reusing metals. The funding will be distributed through the Engineering and Physical Sciences Research Council.

As part of the growth strategy, the government promises to respond to proposals for a new high-speed rail link between London and the West Midlands before the end of March.

The paper also outlines plans for a broadband investment fund to ensure super-fast internet access covering 90% of the country.

For large-scale capital investments, Infrastructure UK – the agency set up by the government last year to provide leadership on this issue – will publish a strategy before April’s Budget, the paper says.

Going for growth also restates last year’s pledge to invest in low carbon technologies. These will range from capturing emissions from coal-fired power stations to ‘substantial investment’ in wind and wave power and establishing a new generation of nuclear generators.

The document details how £950m allocated in last year’s Budget and Pre-Budget Report is being spent on setting up ‘centres of excellence’ in areas such as biotechnology, pharmaceuticals, electronics and renewable energy.

Mandelson said the investments would help rebalance the economy in favour of a ‘renewed politics of production’

‘We must now match the bold and decisive action we have taken on the recession with a similarly radical approach to deliver renewed growth and opportunity,’ he said.

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