Written question asked by Glenda Jackson (Labour) on Monday, 21 June 2010, in the House of Commons. It was due for an answer on Wednesday, 23 June 2010. It was answered by Danny Alexander (Liberal Democrat) on Tuesday, 29 June 2010 on behalf of the Treasury.

Public Finance

Question: To ask the Chancellor of the Exchequer pursuant to the oral statement of 17 June 2010, Official Report, columns 1040-1, on public spending, what estimate he has made of the (a) number and cost of redundancies and (b) costs incurred by the cancellation of contracts consequent on the cancellation of the 12 projects.

Answer: The operational impact of these decisions is a matter for Departments. There may be some costs incurred and some impact on jobs by cancelling these projects. However, by cancelling the projects at this stage the Government are reducing spending pressures, enabling them to reduce the deficit as quickly as possible. The 12 projects cancelled on 17 June have a lifetime cost of £2 billion which will now not be spent. The 12 projects that have been cancelled carried costs of £491 million in 2010-11.

Secondary information

Type: Written question
Reference: 3983; 512 c503W
Session: 2010-12
Related items: Public Spending
Thursday, 17 June 2010
Proceeding contributions
House of Commons
Subjects: Public expenditure
Link: View this Written question on www.publications.parliament.uk