CBI warns spending review must not target Crossrail

Business group urges Treasury to protect work on Crossrail and Tube upgrades in order to boost growth

The CBI is calling on government to guarantee that Crossrail and work upgrading London^s Underground continues after next month^s Spending Review.

In a submission to the Treasury today, the business group said that as government limits spending it should prioritise areas that foster the economies ability to grow and and has outlined a number of proposals.

The government has said that it will make ^32bn of annual spending cuts by 2014/15. However, while the CBI agrees that spending must be limited to avoid major tax rises that would damage the UK^▸ (United Kingdom) economy and undermine competitiveness, it says protect funding in areas that foster economic growth must be protected.

It adds that the government must prioritse investment in infrastructure as well as research and development and education and training. Inparticualr it highlights the importance of investing in transport infrastructure as this offers high returns and will play a crucial role in boosting domestic and international trade.

This includes Crossrail and upgrades to London^s Underground as well as maintaining existing transport infrastructure and returning public sector capital investment to 2.25% of GDP.

The CBI says savings can be made by subjecting all public sector transport projects to rigorous value for money assessments and by attracting more private sector funding and by reducing concessionary fares and the number of Highways Agency contracts.

John Cridland, CBI deputy director general, said: ^Cutting spending means tough choices. We think that the need for economic growth, not the noise of the loudest voice, should determine where cuts are made. The Government must improve the efficiency of public services and focus the limited public money available on areas that do most to galvanise growth.^

Plymouth-based airline Air Southwest sold

Plymouth-based airline Air Southwest has been sold to Eastern Airways.

Air Southwest employs about 150 people and flies to UK^▸ (United Kingdom) regional airports as well as the Republic of Ireland and the Channel Islands.

Owner Sutton Harbour Holdings made the decision to sell in May after the airline's operating profits fell by ^600,000.

Air Southwest will continue to fly under its existing brand and staff will be employed by Air Southwest .

The airline was created in 2003 when British Airways withdrew flights to the South West.

Humberside-based Eastern Airways employs 420 staff and operates a fleet of 30 aircraft serving 21 destinations in the UK, Ireland, Norway and France.

Nigel Godefroy, chief executive of the Sutton Harbour Group, said: "Being part of a larger airline will bring stability to Air Southwest and that is good news for air travel to and from the far South West, and for Plymouth and Newquay airports."

Richard Lake, managing director of Eastern Airways, said: "Air Southwest is well regarded by its customers and we want to ensure we retain that loyalty by continuing to offer excellent service and value for money."

A3 LONDON PADDINGTON ^ BRISTOL TEMPLE MEADS ^ WESTON-SUPER-MARE.
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 3 Limited Stops
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   3.13 Penzance
      (a) On Mondays to Fridays and Saturdays, one service from London
            Paddington, arriving in Penzance before 1330, shall call.
      (b) On Mondays to Fridays and Saturdays, two services to London
            Paddington shall call, one of which shall depart Penzance after 1715.
      (c) On Sundays, one service from London Paddington arriving in
           Penzance before 1415 shall call.