Spending Review: Osborne puts £1bn in Green Bank

Published:  22 October, 2010

LONDON: The Government announced plans for a green infrastructure bank (GIB) in the comprehensive spending review as Chancellor, George Osborne, vowed to "prioritise public spending likely to spur growth". Nick Appleyard reports.

The £1bn committed to the bank was much lower than anticipated and it was revealed the Department of Energy and Climate Change's budget would fall by 5% a year.

Referring to the GIB, Mr Osborne told the House of Commons: "I hope much more will be raised by the private sector and from the Government's future asset sales."

Feed-in tariffs will be 'refocused' in 2014-15, despite being reportedly lined up for immediate cuts prior to today's announcement. Such a move could have prompted a legal challenge from councils that have planned and invested in renewable electricity infrastructure.

A long-term investment in the nation's flood defences was also pledged despite a revelation that spending at the Department for Environment, Food and Rural Affairs would drop by 24% over the Spending Review period.

The Chancellor announced a raft of transport projects – including Crossrail, a new suspension bridge over the Mersey and refurbishments to the Tyne & Wear Metro –would go ahead nationwide amounting to some £30bn over four years.

The Renewable Heat Incentive was given the nod, while the Warm Front programme will be replaced with a Green Deal for energy-efficiency from 2013.

Mr Osborne said: "Long-term investment in the capacity of our transport, our science, our green energy will all help move Britain from its decade-long dependence on one sector of the economy in one part of the country."

Sign Up

For the Builders' Merchants News enewsletter.

In the spotlight

We have vacancies all over the UK for those who work within the Building Supplies sector.

Events Diary