Chancellor announces £23bn national productivity investment fund

Philip Hammond 620px

In today’s Autumn Statement Chancellor Philip Hammond has committed £23bn over the next five years to a new national productivity investment fund.

Hammond said “we are investing today for the economy of the future”. He added that investing in infrastructure will directly benefit businesses, and that while the number of homes built last year hit an eight-year high “we must go further still”.

The Government will focus on local government infrastructure, with £2.3bn allocated to a housing infrastructure fund, to deliver housing in areas of high demand. A further £1.4bn will be invested to deliver 40,000 additional affordable homes.

A further £1.8bn has been allocated to English regions from the Government’s local growth fund and £1.1bn of extra investment in local transport networks, with £220m to be spent on reducing traffic pinch points and £27m for an expressway between Oxford, Milton Keynes and Cambridge.

Digital infrastructure was prioritised, with more than £1bn set aside for broadband and 5G, with 100 per cent business rates relief over five years on new fibre infrastructure from April.

Hammond says he is committed to making sure “Britain is the number one destination for business”.