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Nick Clegg says broadband spending can boost economy
The Deputy Prime Minister revealed the government will invest in infrastructure to drive economic growth.
The Liberal Democrat leader, speaking at the London School of Economics, acknowledged that increased spending on broadband, high-speed rail networks, renewable energy and other services will not stimulate demand "overnight", although he insisted it will do so "more quickly than many supply side measures".
Infrastructure spending also drives productivity, Mr Clegg claimed.
However, he went on to stress the importance of focusing government money on the right areas, accusing the previous government of taking a "kitchen sink approach" in which any and all capital spending represented pro-growth investment.
"That's not true," the Deputy Prime Minister stated.
"Most capital spending is worthwhile. But it doesn't all support long-term prosperity. You have to be ruthless, focusing on the investments that transform growth potential: transport, energy, digital communications."
Better broadband will give small businesses the means to flourish, enhanced road and rail links will allow manufacturers to transport goods more easily and growth in renewable energy generation will benefit low-carbon industries, he explained.
With that in mind, Mr Clegg revealed the Conservative-led coalition is set to sift through the UK's plans for capital spending and award priority status to 40 of the biggest infrastructure projects, which are expected to have the greatest impact.
"Each will be rigorously examined by ministers to make sure there are no delays, no blockages and the economy feels the benefits as quickly as possible," he said.
High-speed broadband deployment was among the key initiatives mentioned by Mr Clegg.
His speech came in the same week that Culture Secretary Jeremy Hunt outlined plans for a "bold" approach to broadband development.
Speaking at the Royal Television Society's Cambridge Convention, Mr Hunt stressed the country cannot afford to drag its feet with regards to rolling out faster internet services.