Responding to the Chancellor's Spending 2000 announcement yesterday, CBI Director General Digby Jones said:

"I am delighted that this Government has been listening to business across the country of all sizes and in all sectors. Transport and education go to the core of enhancing productivity in the medium-term. This country's global competitiveness depends on getting investment in these areas right. The challenge will now be to ensure that the funds allocated today are spent wisely and targeted where they can be most effective.

"Although business will have reservations about a level of public spending above 40% of GDP we are pleased at the Chancellor's determination to attack the under-investment of the past.

"This is excellent news for business as they seek to get their people to work and goods to market. Hopefully it will provide the grounding for a properly funded 10-year plan of investment in our transport infrastructure that will deliver the £180 billion, we have argued, the country needs.

"Business needs confidence in the basic skills of school leavers. Productivity will flow from the workforce when the problems of adult illiteracy and innumeracy have been eradicated. The additional funding announced today will be a significant help in this area.

"Members across the country will welcome the boost to regional development spending."