Applications have opened for UK Guarantees to kick start critical infrastructure projects that may have stalled because of adverse credit conditions. Up to £40 billion worth of projects could qualify and, subject to legislation, the first guarantees are expected to be awarded in the Autumn.
To qualify, these projects must be ready to start in the 12 months following a guarantee being given, as well as being nationally significant and good value to the taxpayer.
The government has also announced a new temporary lending programme as part of UK Guarantees will be available to ensure that around 30 public private partnership infrastructure projects, worth an estimated £6 billion in the next 12 months, can go ahead.
A major £5 billion export refinancing facility will be available later this year as part of UK
This will provide guarantees to support British exporters by ensuring that overseas buyers have the long-term funding they need.
George Osborne, The Chancellor of the Exchequer, said:
"The credibility the Government has earned through tackling the deficit is already helping millions of British families and businesses through keeping down the cost of borrowing.
"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.
"Britain's credibility has been hard-won and involved difficult decisions, so I want to make sure its benefits are passed on to the whole economy."