By Deirdre Tynan • 17 June 2021 • 8:13
Chancellor of the Exchequer, Rishi Sunak.
British businesses and communities will have billions of pounds available from June 17 as Chancellor Rishi Sunak is set to open the new UK Infrastructure Bank in Leeds to support local growth and tackle climate change.
THE Bank’s £22 billion of financial capacity will consist of £5 billion of equity, £7 billion of debt, and £10 billion of guarantees.
It is part of the government’s plan to deliver over £600 billion in gross public sector investment over the next five years which would be the highest sustained levels of public sector net investment as a proportion of GDP since the late 1970s.
The Chancellor of the Exchequer, Rishi Sunak said, “Opening its doors today, the UK Infrastructure Bank will accelerate our ambitions for tackling climate change and levelling up, while creating new opportunities across the UK as part of our Plan for Jobs.
“Through the Bank, we are investing billions of pounds in world class infrastructure that will support people, businesses and communities in every corner of the UK.
“The UK Infrastructure Bank will have an initial £12 billion of capital to deploy and will be able to issue £10 billion of government guarantees, helping to unlock more than £40 billion of overall investment,” he added.
The Chair of the UK Infrastructure Bank, Chris Grigg, said, “The new UK Infrastructure Bank is open for business. I am delighted to be leading this institution, which will be a catalyst for investment to support regional economic growth and net zero ambitions. I look forward to building strong partnerships with project sponsors, institutions and local leaders.”
The bank has also been welcomed as a boost for Leeds.
Tom Riordan, chief executive of Leeds City Council, said, “Since the brilliant news about Leeds being the home of the UK Infrastructure Bank we’ve been busy working with Bank and Treasury colleagues to give them a warm welcome to the city. Today’s launch is a positive signal that the Bank is moving at pace and there is a strong fit with plans for investment in clean energy, transport and housing in Leeds and the North.”
From June 17 the Bank will be able to issue loans, equity, or guarantees to private projects. The Bank will start lending to local authorities later in the summer.
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Deirdre Tynan is an award-winning journalist who enjoys bringing the best in news reporting to Spain’s largest English-language newspaper, Euro Weekly News. She has previously worked at The Mirror, Ireland on Sunday and for news agencies, media outlets and international organisations in America, Europe and Asia. A huge fan of British politics and newspapers, Deirdre is equally fascinated by the political scene in Madrid and Sevilla. She moved to Spain in 2018 and is based in Jaen.
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