Industry leaders believe infrastructure spending will ‘boost investment and create jobs’.
John Cridland, director general of the Confederation of British Industry, said: “The CBI has been crying out for real action on infrastructure, investment and exports.
“£5 billion on infrastructure, half a billion a year tax relief for small firms, and £1.5 billion extra export support should boost investment and create jobs.
“The Government now has everything to prove by delivering. It is no surprise that after a difficult year the economic realities dictate that austerity and debt reduction will take longer.
“The Chancellor has stuck to his guns on deficit reduction - avoiding deeper cuts or more borrowing to retain international credibility.”