The Green Investment Bank (GIB) may be unable to borrow money from 2015 if the Government doesn’t meet its deficit reduction targets, green lobby group Transform UK director Ed Matthew said today.
Speaking at the Green Deal conference in London, Matthew said that if the Government fails to reach its structural deficit targets by 2015 it may not allow the GIB to borrow money.
“I think the problem is that the Treasury wants control of the borrowing,” said Matthew. “And this Government is ideologically opposed to a public bank.”
Further details about the GIB are expected next week’s in chancellor George Osborne’s Autumn Statement.
In his March Budget Osborne revealed that the bank would be launched in 2012, a year earlier than expected and that it would also have £2bn in funds in addition to the earlier pledged £1bn funding from the sale of public-owned assets. However, he curbed the bank’s ability to borrow money until 2015 at the earliest. Until then, the bank’s resources will be limited to £3bn.