Infrastructure bank to drive £40bn of green investment: Leeds new infrastructure bank will drive at least £30bn of green investments.
Chancellor of Exchequer Rishi Sunak has a series of sustainable plans for the 2021 Budget, in which he established how the Conservative Party will work to drive a sustainable and buisness focused recovery in the face of COVID-19 pandemic this lead to the largest fall in GDP recorded in the past 300 years as the UK economy shrunk by 10%.
It was emphasised that a “real commitment to green growth” is needed to build a strong, fair and resilient future economy after he stressed the UK must “do things that have never been done before.”
‘The first-ever UK infrastructure bank, located in Leeds, the bank will invest across the UK in public and private projects to finance the green industrial revolution.” said Mr Sunak.
“Beginning this spring, it will have an initial capitalisation of £12 billion and we expect it to support at least £40 billion of total investment in infrastructure.”
He unveiled while building on the government’s upcoming green finace measures, that a new retail saving product in the form of a green bond to give the UK public a chance to directly invest in environmentally-friendly projects themselves.
“Offshore wind is an innovative industry where the UK already has a global, competitive advantage, so we’re funding new port infrastructure to build the next generation of offshore wind projects in Teeside and Humberside.” Stated The Chancellor also announced new plans for the offshore renewables sector.
The Budget is to provide an updated monetary policy remit for the Bank of England to better reflect the importance of enviornmental sustainability and the trasition to net zone, this included plans to position the City of London as the global leader for “voluntary high-quality carbon offset markets”
He stated: “When I look to the future of Teeside, I see old industrial sites being used to capture and store carbon and offshore wind turbines creating clean energy for the rest of the country.” He added “there would be new funding directed to the Holyhead Hydrogen Hub and pledged to see the UK become a “scientific superpower”
Not everyone in the House of Commons were convinced, Party Leader of the Labour Party, Keir Starmer was warning that the Budget announcement “falls short of what is needed” to tackle the climate emergency which he stressed remains “the biggest challenge in the country” as he cast his doubt on the sincerity of pledges to deliver net zero.
“If anything sums up this government’s commitment to a green recovery and jobs for the future, it’s building a coal mine we can’t even use.” said Mr Starmer, Referring to the controversial West Cumbria Mining project