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ARTICLE · 25 MARCH 2011

Budget 2011: Infrastructure Update

Yesterday’s Budget announcements contained some good news for infrastructure investors and developers, including increased capital for the Green Investment Bank (GIB) and a new "fast-track" planning process, but the market will have to wait a little longer for details of clear initiatives on a number of the Coalition Government’s key infrastructure policies.

United KingdomGovernment, Public Sector
Tresna Tunbridge
Tresna Tunbridge
Louise Santos
Louise Santos

Yesterday's Budget announcements contained some good news for infrastructure investors and developers, including increased capital for the Green Investment Bank (GIB) and a new "fast-track" planning process, but the market will have to wait a little longer for details of clear initiatives on a number of the Coalition Government's key infrastructure policies.

Green Investment Bank

The Chancellor yesterday announced plans to inject £3 billion of capital into the GIB, £2 billion more than was initially proposed last year. This additional investment will be funded from asset sales, including the sale last year of High Speed 1, the rail link between London and the Channel Tunnel, and the air traffic control service (NATS). Provided that national debt reduction targets are met, the GIB will be permitted to leverage up to £15 billion in private capital from 2015/2016 (for more on the GIB, click  here and see also the National Infrastructure Plan (link below)).

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