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Government cancels £450m hospital job

The Government has cancelled 12 projects and suspended several more after its review of spending passed by the previous regime since the start of 2010.

The £450 million North Tees and Hartlepool hospital is by far the biggest construction job cancelled.

The £1.1 billion A14 road scheme has been put on ice, as have the £50m Leeds Holt Park Well-being Centre, and the £94m Birmingham Magistrates Court.

The £12m Sheffield Retail Quarter and the £23m Kent Thameside Strategic Transport Programme have also been suspended.

Chief secretary to the Treasury Danny Alexander said: “We are determined to tackle the unprecedented budget deficit and bad financial management we have seen over the past decade, but are equally determined to do this in a way that is fair and responsible.

“As a result of the poor decisions made by the previous Government, I have taken the decision to cancel certain projects that do not represent good value for money, and suspend others pending full consideration in the Spending Review.

“We have also found another spending blackhole in the previous Government’s plans - projects had been approved with no money in place to pay for them. I am determined to deal with this problem head-on and ensure we never see this kind of irresponsible financial planning in Government again.”