Regions missing out on kickstart projects, contractors warn

Regions badly hit by the financial downturn could miss out on the Government's plan to kickstart the economy through £250bn of infrastructure spending.

The UK Contractors Group has warned the Chancellor, George Osborne, and the Business minister, Mark Prisk, that almost 60 per cent of projects that are dedicated to a particular region have been allocated for London and the South-east. The UKCG represents more than 30 construction companies accounting for £33bn of the sector's turnover.

While nationally driven projects such as the High Speed Two rail link from London to Birmingham will help many areas, some regions have failed to establish job-creating infrastructure projects. Regions with above-average levels of unemployment, such as the North-east and Yorkshire, have been particularly poor at developing major construction projects.

The UKCG's Stephen Ratcliffe said: "The regions are losing out. Regional politicians need to get their acts together and make the case for infrastructure spending in their areas. All parts of the UK should be able to share in the benefits of increased investment."

The industry argues that for every £1 spent on building work, £2.84 of wider economic activity is generated.