Government unveils infrastructure and export finance guarantees

The Government has today unveiled a new £40 billion guarantees scheme aimed at increasing investment in UK infrastructure projects.

The first guarantees are expected to be awarded in the Autumn and will encourage institutional investors, such as pension funds, to invest in projects across a range of sectors including transport, utilities, energy and communications.

In addition, HM Treasury has announced that a £5 billion export refinancing facility will be made available later this year to support British exporters.

The scheme will provide long-term loans for overseas buyers of UK exports at competitive rates, by guaranteeing a series of short-term bank loans.

UK Export Finance will begin supporting loans by the end of the year with sectors likely to be considered  including aerospace, oil and gas extraction equipment, transport and telecommunications infrastructure services, hospital construction and management services, and sports infrastructure.