British businesses will benefit from a post-Brexit investment
boost, as the Chancellor is expected to announce an initial
[£12 billion] of capital and [£10 billion] of government
guarantees for the UK Infrastructure Bank in next week’s
Budget.
This will help the Bank, which will launch in the Spring and
operate UK-wide, unlock billions more in private finance to
support [£40 billion] of infrastructure investment that will
fire up the economy and help achieve the UK’s commitments on
net zero and levelling up. This will play a key part in efforts
to build back better after the pandemic.
The Bank will offer a range of 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.
Speaking ahead of the Budget, the Chancellor of the Exchequer,
, 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.”
In addition, the Chancellor is also expected to commit a
further £375 million to co-invest 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 £20 million of
funding.
It follows in the footsteps of the successful Future Fund which
was introduced by the Chancellor last year to ensure that the
pandemic did not impact negatively on high-growth firms. The
scheme provided 1,140 loans worth £1.1 billion to innovative
firms.
