LONDON (CU)_UK Chancellor of the Exchequer Rishi Sunak is expected to set aside £22 billion for a new infrastructure bank when he delivers his Budget to parliament on Wednesday (March 3), the Daily Telegraph reported.
The Newspaper said that among several key announcements of his budget will be one geared towards the government’s green economy plans, to set aside £12 billion of capital and £10 billion in government guarantees for a new UK Infrastructure Bank.
The announcement is expected ahead of COP26, the United Nations Climate Change Conference, which will be hosted by United Kingdom in November.
The media outlet further reported that the new bank, which is expected to be launched in the coming Spring, will operate across the country, and hopes to unlock billions more in private finance in order to support infrastructure investment for the economy.
The financial institution will offer a range of products including, loans, equity and guarantees, which will be tailored to support infrastructure projects of the private sector, in industries such as transportation and renewable energy. Moreover, mayors and local authorities will be offered loans at low interest rates in order to fund projects in every region of the country.
“We are backing this bank with the finance it needs to deliver modern infrastructure fit for the 21st century and create jobs,” Sunak told the newspaper.
“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,” he said.
