Darling to announce £2bn green bank in Budget

Darling confirmed yesterday that his Budget would be “sensible” and “workmanlike” and the green bank is expected to be a central plank of those objectives as the Government attempts to get the private sector investing into new, unproven technologies.

According to reports, the bank will invest in new nuclear power stations, renewable energy projects and green transport. It will be part-funded by the Treasury, which will invest £1 billion from the sale of Government assets, such as the Tote and the Dartford River Crossing. The other £1 billion will come from the private sector.

The Government believes the creation of such a bank will create an extra 400,000 green jobs, thereby helping the UK economy back to recovery and out of debt.

A Government source told Reuters a state-backed bank was required to “draw in investors” to back the “high risk profile” of green technologies.

The Government has tough carbon reduction targets to meet by 2020 and an aging energy infrastructure to replace. The Green Investment Bank would help it meet both these objectives.

Speaking on the BBC’s Andrew Marr Show, yesterday, the Chancellor said there would be no “giveways” in the Budget. Instead it will focus on getting the economy back to growth.

"Our challenge is to make sure that Government is prepared to do what is necessary to get growth. A little bit of Government help can unlock a lot of private sector investment, and that is going to be the focus this week,” he said.

Last week, the Conservatives confirmed they would create a Green Investment Bank if elected, and were setting up a working group to see how to do it.

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