Sunak’s £22bn funding for green infrastructure bank
BRITAIN’S growing green economy will receive a boost in Wednesday’s Budget when Chancellor Rishi Sunak pledges £22billion for a new UK bank, The Sunday Telegraph can disclose.
Mr Sunak will set aside an initial £12 billion of capital and £10 billion of government guarantees for the UK Infrastructure Bank ahead of the UK hosting the climate change COP conference in Glasgow in November.
The bank will launch in the spring and operate UK-wide and it is hoped will unlock billions more in private finance to support £40billion of infrastructure investment for the economy.
Treasury officials said it should help to achieve the UK’s commitments on net zero and ‘levelling up’ communities with extra government support.
Mr Sunak, said: “We are backing this bank with the finance it needs to deliver modern infrastructure fit for the 21st century and create jobs.
“This shows how serious we are about levelling up the country so that everybody can benefit from our future prosperity. Britain’s businesses and the Great British public deserve world-class infrastructure and that is exactly what this new bank will help us deliver for them.” The bank will offer products including equity, loans and guarantees which can be tailored to support the needs of private sector infrastructure projects, in sectors such as renewable energy, carbon capture and storage and transportation.
It will also offer infrastructure loans to mayors and local authorities at low rates to help fund high-quality projects in every region and nation – helping to level up the UK.
It will provide world-class advice and support to help deliver complex infrastructure projects, sources said. Of the £12 billion, £4 billion is set aside for local authority lending and £8 billion for private projects.
In addition, the bank will be able to issue £10billion of government guarantees. The Chancellor is expected to commit a further £375 million to coinvest alongside the private sector in high-growth, innovative UK firms.
The ‘Future Fund: Breakthrough’ scheme will ensure the Government continues to support highly innovative companies, such as those working in life sciences, quantum computing or clean tech, that are aiming to raise at least £20million of funding.