Is a government backed infrastructure bank on the way?
There would appear to moves within the UK government to introduce a "government backed infrastructure bank" which will be used primarily to raise funds for projects in the public sector. A new Treasury specialist unit has been set up to look at the infrastructure in the UK and identify large-scale projects in the utilities, transport, waste and the telecom sectors. However, there is some dispute as to how funds can be raised in the short to medium term to meet the cost of these projects.
Apparently the government will need around £200 billion of infrastructure investment over the next decade and it is unclear at this moment in time where this finance will come from. However, slowly but surely we are seeing support growing for a government backed infrastructure bank which would primarily act as a link between the government, private capital and the public sector. Quite how this would work is unclear but there is certainly a need to bring in outside capital to improve the UK infrastructure and build on recently announced projects such as the nationwide broadband network.
On the surface it looks as though the UK government is still very keen to push ahead with the "major" large-scale public sector projects in the pipeline although in reality many could be delayed while the UK plc balance-sheet is replenished and restocked.
Share this..
Related stories
Bank of England dampens hope for swift economic recovery
In a bitter blow to Alistair Darling's ever optimistic forecasts for the UK economy the Bank of England has today revealed a sharp re-adjustment in economic forecast for the short to medium term. Alongside a suggestion that the UK economy is still struggling to pull out of its downward spiral Mervyn King, the Gov of the Bank of England, has confirmed that in his opinion any recovery would be "rela...
Read MoreWill we ever get to the bottom of the reasons for the current recession?
As the all-powerful Treasury select committee prepares itself for a serious grilling of some of the U.K.'s leading banking figures there is scepticism in many parts of the country as to whether we will ever get to the bottom of how the current economic climate was allowed to develop. While the Treasury select committee has the power to ask difficult questions and call expert witnesses, there are c...
Read MoreMutual societies under pressure on debt downgrade
The credit rating agency Fitch has confirmed that the debts of the Nationwide building society, the largest mutual in the UK, has been downgraded from stable to negative due to the pressure placed upon the Nationwide balance sheet by the recession. Fitch believes that further weakness in the loan book of the Nationwide building society will impact upon the company's profitability and financial str...
Read MoreBritish Airways primed for emergency fundraising
It has been revealed that British Airways is currently in talks with institutional shareholders regarding a possible emergency rights issue which would raise significant funds to see the company through its current problems. Rumours suggest that up to £500 million could be raised by British Airways in the short term as the company looks to cut costs and reinvigorate the balance sheet which has ta...
Read MoreRoyal Bank of Scotland staff turn to headhunters
It has been revealed that a significant number of Royal Bank of Scotland staff, who will have their bonus payments limited in the short to medium term, are turning to headhunters to try and find alternative employment away from the group. Chief executive Stephen Hester has made a direct plea to these members of staff looking elsewhere and suggested that the situation will improve once the recessio...
Read More