Philip Hammond sets out post-Brexit infrastructure commitment
2 min read
Philip Hammond will today move to reassure businesses about post-Brexit infrastructure spending, committing to protect funding once the UK leaves the EU.
The Chancellor will set out plans to support projects that would otherwise have looked for finance from either the European Investment Bank (EIB) or European Investment Fund (EIF).
EIB lending to the UK is worth around €48bn and has supported a host of sustainable investment projects such as tram networks in Nottingham and Manchester. The EIF supports start-up businesses in field such as tech and life sciences.
In his annual speech at Mansion House this evening, Mr Hammond will tell business leaders the Government is working to ensure British firms can continue to access EIB funding for the duration of the UK's membership of the EU.
He will also set out how home-grown institutions such as the British Business Bank will extend their remit to support projects in need of finance.
The Treasury estimates that demand for the BBB's extended venture capital programme could be as much as £80m, unlocking up to £320m of total investment into funds.
The UK Guarantee Scheme, which was launched in 2013 to underwrite big infrastructure projects will also offer new support in the form of 'construction guarantees' aimed at reducing risk and helping firms access private finance.
Mr Hammond said: “Investors need certainty in order to continue to support the UK economy and create jobs as we leave the EU. That is why we will fortify the vital financial support that helps businesses to grow - from cutting edge start-ups right through to large scale infrastructure projects.”
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