The government has axed projects worth £2bn and suspended projects worth £8.5bn that were agreed earlier this year by the previous Labour administration.

Treasury chief secretary Danny Alexander (pictured) has announced that projects agreed this year that are not good value for money or do not reflect the priorities of the new Conservative-Liberal Democrat government have been axed.

Projects have been axed that total £2bn, including the £450m North Tees and Hartlepool hospital, a £25m visitor centre at Stonehenge and the £13m Outokumpu project by Yorkshire Forward to develop the Outokumpu site at Shepcote Lane in Sheffield into an industrial park.

It has also suspended projects worth £8.5bn including the Kent Thameside strategic transport programme (£23m), Sheffield Retail Quarter (£12m), the Libraries Modernisation Programme (£12m), the Leeds Holt Park Well-being Centre (£50m) andf Birmingham Magistrates Court (£94m).

Alexander said: “We are determined to tackle the unprecedented budged deficit and bad financial management we have seen over the past decade, but are equally determined to do this in a way that is fair and responsible.”

In total, 217 projects were re-submitted to the chief secretary for approval, of which 12 have been axed and 12 have been suspended.

• Tories to axe 750 school projects, says Labour
• Government to slash HCA funding by £230m
• Osborne includes property in £6.2bn savings plan
• Six councils get £420m for school projects
• A-Z of government efficiency scheme Total Place