ANAS Sarwar has been called out for pledging more capital investment during the General Election campaign after it emerged ministers have been asked to make billions of pounds in cuts to infrastructure projects.
Despite Chancellor Rachel Reeves pledging to invest more to grow the economy, members of the Cabinet have been asked to model cuts to their investment plans of up to 10% of their annual capital spending as part of this month’s spending review, Government sources have told The Guardian.
The demands would mean big projects such as hospital improvements and defence projects being slowed down or stopped altogether as the Government looks for ways to repair what they say is a £22 billion black hole in the public finances.
In a TV debate during the General Election campaign, Scottish Labour leader Sarwar turned to face First Minister John Swinney and said: “We have already committed more money to our public services, I’ve already set out how we would do more capital investment, we would borrow to do capital investment.”
The clip was unearthed on Twitter by pro-independence account MSM Monitor.
Rachel Reeves is planning to cut annual capital spending by 10%. During the general election campaign Anas Sarwar said Labour would borrow in order to pay for more capital spending. Looks like another Sarwar pledge is about to bite the dust. pic.twitter.com/mcZbI3mZFO
— MSM Monitor (@msm_monitor) October 1, 2024
The account posted: “Rachel Reeves is planning to cut annual capital spending by 10%. During the general election campaign Anas Sarwar said Labour would borrow in order to pay for more capital spending.
“Looks like another Sarwar pledge is about to bite the dust.”
Sarwar has been repeatedly called out for his “no austerity” pledge during the election campaign before the UK Labour Government proceeded to cut the Winter Fuel Payment, with Keir Starmer saying the upcoming Budget would be “painful”.
On him pledging more capital investment, people have questioned why he is not now being challenged over “lies” he made during the campaign.
One user commented on the clip saying: “It's quite remarkable how little Sarwar has been challenged over his general election lies.”
Another said: “Sarwar is the branch manager of a single part of the party, what he promises [is] meaningless as he's not part of the party leadership.”
Economists have warned that cuts of this scale to capital spending could end up damaging the economy and the UK’s creaking public infrastructure.
Reeves (above) told the Labour conference last week: “It is time the Treasury moved on from just counting the costs of investment in our economy to recognising the benefits too. Growth is the challenge and investment is the solution.”
But Treasury officials argue that cutting spending on infrastructure in the short term is the only way to repair the gap quickly.
One Whitehall source told The Guardian: “We’re being told the Treasury wants to borrow more to invest in the long term but that does not cover the fact we’re being asked to make major capital spending cuts this year and next.”
Reeves will announce her first Budget as Chancellor on October 30.
Scottish Labour have been approached for comment.
