Figures for a cut in net investment are causing alarm, but its the gross investment construction needs to worry about

There has been much comment recently concerning the planned cuts in public sector investment, with a figure of 50% often mentioned. This relates to the planned reduction in public sector NET investment over the period 2009/10 – 2012/13.

However, GROSS investment is planned to fall by a lesser 30% over this same period.

What is the difference between the two measures and which one is relevant to construction companies?

Postscript

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