War breaks out over the £5bn

There appears to be a row developing over the spending plans of the coalition.

With yesterday's warning from the IMF over the risks of the economy slipping back into recession,various sources are leaking that there will be a £5bn increase in capital spending to help boost the economy.

The Treasury has rejected suggestions that George Osborne would change his economic strategy and this morning the Chief Secretary to the Treasury Danny Alexander has been rolled out to the media to confirm that the coalition will not be changing its spending plans.

They are an integral part of our deficit reduction plan he told the Today programme adding that

'This country has a great asset in clear spending plans that we are sticking to, and that is something we should not sacrifice'

However there is no smoke without fire with the BBC's Nick Robinson quite adamant that sources have told him that there are moves afoot to release the £5bn.

Odds on that the source is the Business Secretary?

One Tory who is definitely against a move is John Redwood.Writing on his blog he says spending an extra £5 billion is a stupid idea launching a tirade at the BBC whose economic correspondent

seemed unaware that the government has already tried the £5 billion capital boost, and the economy has slowed down markedly despite it. (Red Book page 93 Public sector gross investment) She seemed unaware that the government upped the spending figures in March, with so little favourable effect.