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Health and schools projects delayed

Health and education projects worth nearly £1.7 billion have been put on hold over the last two months according to the latest research by Glenigan.

The findings have called into question the Government’s claims that it will be able to accelerate spending on public projects to try to combat the impact of the economic crisis.

The Government has said it will bring forward £3 billion worth of work to help keep the UK economy going.

The research was undertaken for H&V News sister magazine Construction News.

Allan Wilen, economics director at Glenigan, said: “The number of education and health projects being put on hold is a concern. The construction industry is looking to these sectors to ease the impact of falling private sector workload.

'A number of these schemes are themselves victims of the credit crisis, being private funded health or education facilities that were to be provided as part of large scale developments.

'But in addition, the credit crisis also appears to be threatening the delivery of public sector projects funded through PFI.

'Many of the schemes have also been placed on hold by the public sector clients themselves as they review changing priorities or address administrative issues.”

The research also showed that overall, 1,246 building and civil engineering projects with a combined value of £10.8 billion have been put on hold since the middle of October.

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