Osborne’s plans for growth
George Osborne has said his new plans to get Britain building major infrastructure projects could lead to an extra £50bn spending in the economy.
These plans, which were announced on Wednesday, include loan guarantees and lending for big building projects. They come after months of criticism that the government wasn't doing enough to create jobs and help small businesses within the construction sector.
The largest scheme announced involved is the UK Guarantee, under which the government will secure debts which were taken on to build “nationally significant” projects. The Government will ensure developers can raise money at an affordable rate to build these projects.
Small businesses who want to be involved will have to fill out their applications by Wednesday and it should also be noted that borrowers must pledge to start building within a year. This scheme could be particularly helpful to those working in the energy and transport sectors as roughly £40bn is due to be generated in investment, according to Chancellor Osborne.
There is also a temporary lending programme being introduced, where developers can borrow money directly from government for partly-funded projects such as housing or schools. A loan guarantee scheme for British exporters has also been announced.
These initiatives were talked about first at the chancellor's Mansion House speech to the City where Mr Osborne revealed a £100bn support programme was to be introduced to the British economy.