18.07.12
£50bn infrastructure investment underwritten by Government
The Government is to underwrite £50bn in infrastructure investment and exports to promote economic growth, the Chancellor is to announce.
Under the ‘UK Guarantees’ scheme, up to £40bn will be underwritten for infrastructure projects previously on hold due to difficulties securing private sector funding.
The Government will charge for finance for projects in a range of sectors. Those seeking the funding must prove their projects will have a positive impact on economic growth, provide good value for money and will be able to begin work within 12 months.
£6bn is planned to go towards around 30 PPP projects and £5bn for an export refinancing facility to be opened later this year. The first infrastructure guarantees are expected in the autumn.
Chief secretary to the Treasury, Danny Alexander, said: “This is not a direct call on the taxpayer. That would only happen if something went wrong with a project.
“The measures we’re announcing today will help work get started on many important infrastructure projects and help our major exporters, providing lasting benefits for thousands of people and a significant boost to the economy.”
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