The coalition will Under the “UK Guarantees” scheme underwrite £50bn of investment in infrastructure and exports to try to lift the economy. Up to £40bn of funding will be underwritten for infrastructure projects that have been put on hold following difficulties in raising money from private investors.
The government will charge for finance for the projects, which could be in a range of sectors, including transport, energy, communications, and education and those seeking the money will have to to meet criteria including being able to begin work within 12 months. They will also have to prove the project will have a positive impact on economic growth, as well as provide good value for taxpayers.
The government intends to make the first guarantees this autumn.
The government is also helping the private sector by providing £6bn to around 30 projects planned under Public Private Partnership (PPP) arrangement. These schemes get all their initial funding from the private sector but some are struggling to get off the ground because of difficulties in securing funding.
Treasury Chief Secretary Danny Alexander and George Osborne also announced a £5bn export refinancing facility to be launched later this year.
Lib Dem Minsiter, 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.”