Capital projects will prop up ailing economy

Plans to boost government spending to help the economy weather the impending recession has been welcomed by UK specialist recruiter, Resourcing Solutions.

Critical jobs in engineering and construction should be protected .

Richard Lawrance, managing director, RSL, stated: "This is a time when you have to support the economy and the bringing forward of major capital investment projects should be seen as a vital injection of hope in the construction and engineering sectors.

Alistair Darling announced over the weekend of plans to prop up the economy by embarking on big government projects, an interventionist style of the economist John Maynard Keynes.

The Chancellor singled out housing, energy and small businesses as areas that would benefit from a so-called 'reprioritisation' of spending plans.

Richard Lawrance continued: "He also signalled that new proposals for two new aircraft carriers and a replacement for the Trident nuclear deterrent would go ahead, as well as London' GBP16 billion Crossrail project and the 2012 Olympic games for which the budget is GBP9.3 billion.

The Treasury is also understood to be fast-tracking construction projects - including schools, medical buildings, social housing and leisure centres - using money earmarked for future years.

"There is no doubt in my mid that this pump-priming of the market will protect investment and jobs in the critical construction and engineering sectors for many years to come".

"There is already a shortage of good quality candidates in these markets and we envisage that that position will not change for some time to come," added Richard.

To fund this programme the UK government borrowed a record amount last month, the Office for National Statistics (ONS) data shows.

Public sector net borrowing hit GBP8.092bn in September, up from GBP4.775bn in the same period a year earlier, marking a record for the month.

The amount borrowed this financial year stands at GBP37.6bn so far - more than the total amount borrowed in 2007.

Richard Lawrance concluded: "The government has said it will keep investing money into public works to prevent a recession".

"These figures come a day after Ernst and Young Item's Club said the UK economy was already in a recession and would see the economy shrink by 1% next year, before growing by 1% in 2010".

"For markets such as ours the challenge will therefore remain how to attract the very best people to fill the roles created by the demand for jobs these capital projects will stimulate.

Back to top