In September 2012 the government published the Infrastructure (Financial Assistance) Bill 2012. The aims of the Bill are to:
- overcome the constraints on the capital and banking markets to allow access to lending for infrastructure projects; and
- to further the aims of the UK guarantees scheme by allowing the Treasury to support infrastructure projects itself.
Given the acute lack of funding currently depressing any activity in infrastructure projects, the government has asked Parliament to fast-track this Bill so that funding can become available as quickly as possible.
What the Bill covers
- The draft Bill authorises expenditure by the Treasury and the Secretary of State of up to £50 billion, with provision for that limit to be increased.
- The assistance will be provided in the form of guarantees and other appropriate forms of financial assistance.
- This legislation will not have any effect on infrastructure expenditure already required or authorised under other statutes.
- The Treasury must report once a year to Parliament on the amounts of financial assistance provided to infrastructure projects.
- In order to avoid unnecessarily increasing the national debt, the Treasury may receive fee income, expenses and interest on assistance provided to infrastructure projects.
- The scope of the Bill covers the transport, energy, communications and environmental sectors set out in the National Infrastructure Plan as well as the wider housing sector.
Christopher Leadbetter
Clyde & Co