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CBI comments on Government's announcement of a UK guarantees scheme
The CBI commented on the Government’s announcement of a new guarantees scheme to help boost UK exports and leverage private sector investment into infrastructure projects.
John Cridland, CBI Director-General, said:
“Investment and exports will be the dual drivers of future growth in the UK and this scheme should help fire up both engines.”
On long-term loans to buyers of UK exports, he said:
“We are not alone in seeking growth through exports – our European neighbours are competing to break into the same high-growth markets. Offering loans to foreign buyers will make UK exports more attractive and help more firms enter new markets.”
On infrastructure investment, he said:
“This announcement marks a big step towards unlocking the £250 billion of investment needed to renew our national infrastructure, two-thirds of which has to come from the private sector. The Government has produced a package of measures that will use the public balance sheet to underwrite private finance, building on the ideas put forward by business.
“With bank lending still constrained, we must make it attractive for new finance providers to step in and fill the gap. A combination of direct lending and loan guarantees should help to make infrastructure assets more attractive while protecting our fiscal position. Pension funds and other investors will be encouraged by the Government’s attempt to reduce risk by using its funding power to boost the investment grade of a range of projects.
“While the Government’s proposals address infrastructure financing, we now need to focus on project models to ensure delivery of the world-class infrastructure this country needs.”
A copy of the CBI report on attracting investment to infrastructure, An offer they shouldn’t refuse, can be found here.
Notes to Editors:
The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. With offices across the UK as well as representation in Brussels, Washington, Beijing and Delhi the CBI communicates the British business voice around the world.