“Investment in Infrastructure Projects is Crucial for Economic Growth”
The Chancellor of the Exchequer, George Osborne, has unveiled a new UK Guarantees scheme to accelerate major infrastructure projects and create new jobs in the building engineering industry.
The new loan guarantees scheme will enable private sectors investors to benefit from more funding for big building projects which will generate jobs and help economic growth, the UK’s Economics and Finance Ministry said.
It follows two other significant announcements from last week in which the government committed a £9 billion investment package to improve railway networks across England and Wales; and Funding for Lending Scheme which will enable businesses across Britain to access more and cheaper loans.
The UK Guarantees scheme will kick start £40 billion worth of infrastructure projects which will pave the way for more employment opportunities in the trades. The first guarantees are expected to be awarded this autumn.
Under the scheme, the Government will ensure that where major infrastructure projects are struggling to access private finance because of adverse credit conditions, these projects can go ahead.
The Chief Secretary to the Treasury, Danny Alexander, who made the announcement with the Chancellor of the Exchequer last week, 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.”
Chancellor George Osborne commented that the Government’s credentials with the International Monetary Fund, and other similar organisations, have helped millions of British families and businesses to keep down the cost of borrowing.
Mr Osborne added: “Now ‘UK Guarantees’ will use that hard-won fiscal credibility to provide public guarantees of up to £50bn of private investment in infrastructure and exports.”