Government uses fiscal credibility to unveil new infrastructure investment and exports plan
The Chancellor of the Exchequer and Chief Secretary to the Treasury have today unveiled a new UK Guarantees scheme to dramatically accelerate major infrastructure investment and provide major support to UK exporters. This support is only possible because of the Government’s hard-won fiscal credibility, which the Government is now passing on to support the UK economy.
Applications open today for UK Guarantees to kick start critical infrastructure projects that may have stalled because of adverse credit conditions. Up to £40 billion worth of projects that are ready or nearly ready could qualify and, subject to legislation, the first guarantees are expected to be awarded in the Autumn. To qualify, these projects must be ready to start in the 12 months following a guarantee being given.
Also from today, a new temporary lending programme as part of UK Guarantees will be available to ensure that around 30 public private partnership infrastructure projects worth an estimated £6 billion in the next 12 months can go ahead.
A major £5 billion export refinancing facility will be available later this year as part of UK Guarantees to support British exporters by ensuring that overseas buyers have the long-term funding they need.
The Chief Secretary to the Treasury, the Rt Hon Danny Alexander said:
“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.
“This is yet another example of the Coalition working together to put its hard-earned economic credibility to work to increase growth. “