HM Treasury has announced its plan to setup a new UK Infrastructure Bank, first proposed in November’s Spending Review, which will be supported by an initial £12 billion in capital investment and £10 billion in loan guarantees.
The Treasury said that the Chancellor of the Exchequer Rishi Sunak would announce the initial investment and loan guarantees in Wednesday’s budget. It added that the money would help generate private investment to go towards a £40 billion infrastructure spending spree.
Rishi 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.”
Julian David, CEO of techUK, said: “A £12 billion infrastructure bank and £375 million boost to the successful Future Fund are welcome announcements from the Chancellor ahead of the budget.
“Ensuring that the new National Infrastructure Bank can invest in digital infrastructure and the new Future Fund: Breakthrough scheme aims to increase investment across the UK will be vital to building an inclusive recovery. Enabling access to world leading digital infrastructure across the country and providing funding for the next generation of entrepreneurship will be vital to make sure that opportunity and success is not limited by location.
“If the UK falls behind in the rollout of 5G this could see us lose up to £173 billion in growth over the next decade. We also need to ensure that high growth firms outside of London are well supported, as while the Future Fund was a lifeline for many at the height of the pandemic over 60% of funding went to London based firms.”