The coalition government has released details of how department’s capital budgets will fall over the next four financial years.
The Department for Education will see its capital budget fall steadily from £7.6 billion in 2010/11 to £3.4bn in 2014/15. This corresponds to a 60 per cent fall in real terms.
The communities capital budget will fall from £6.8bn in 2010/11 to £3.3bn in 2011/12, then £2.3bn in 2012/13, £1.8bn in 2013/14 and £2.0bn in 2014/15. This equates to a 74 per cent drop in real terms over the period.
Transport capital spending will stay at £7.7bn in 2011/12, the same level as this year. It will then rise slightly to £8.1bn in 2012/13, before dropping to £7.5bn for the next two years. This relates to an 11 per cent drop in real terms.
Justice capital spending will be cut by 50 per cent in real terms during the spending reveiw period - dropping from £600 million in 2010/11 to £400m in 2011/12, then £300m in each of the next three years.
Defence capital spending will rise from £8.6bn in this financial year to £8.9bn in 2011/12 then £9.1bn in 2012/13 and £9.2bn in 2013/14 before falling to £8.7bn in 2014/15. Taking into account inflation, this equates to a 7.5 per cent fall.
The department of Energy and Climate Change’s capital budget will fall from £1.7bn in 2010/11 to £1.5bn in 2011/12, before rising steadily to £2.7bn in 2014/15. This is equal to a 41per cent rise in real terms.