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The Association for Consultancy and Engineering (ACE) has called for the Government to set out clearly how it will tackle the deficit in the forthcoming Budget. The call comes in the ACE’s Budget representation on the expectation that the Chancellor will have an annual Budget in March, prior to a general election.
ACE argues that it is vital to continue investing in infrastructure while identifying where the deficit can be cut. ACE also calls for better procurement systems to increase efficiency, reduce wasteful expenditure and deliver value for money.
Nelson Ogunshakin, ACE chief executive, said: “ACE believes that it is vital for the Government to make clear when and where cuts in public expenditure will be made: this will reassure investors and safeguard sovereign debt. We understand that capital expenditure may have to be cut but ask the Treasury to bear in mind the need for consistency in spending and the return that investment in construction brings.”
ACE’s Budget representation suggests that the Chancellor explores options for private investment as well as looking at reforming the regulatory mechanisms that cover the energy and water industry.
Nelson Ogunshakin added: “The procurement processes used by central government agencies, local authorities and major construction clients should be reformed so that framework systems are accessible to all sizes of companies. Contract risk should be placed with those who are better positioned to manage them and thus avoiding disproportionate costs to bid. This would lead to greater economic activity, growth and value for money.”
-ENDS-
For press information please contact Simon Goldie on 020 7227 1892 or 07905 279328 – sgoldie@acenet.co.uk
Notes to editors
ACE’s key recommendations
• Address the deficit in a way that gives confidence to investors;
• Support construction as a means of driving economic growth;
• Reform public spending through efficiencies in procurement processes;
• Ensure higher education resources are prioritised to support those industries that are vital for economic growth;
• Set out clear, cohesive plans for encouraging private investment in infrastructure;
• Address market and regulatory issues to facilitate the delivery of new energy generation capacity; and
• Reform the water industry regulatory cycle to reward innovation and long term investment.
To read the Budget representation in full, please click on this link.
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