Chancellor George Osborne said that the UK Guarantees Scheme – whereby the government will underwrite up to £40bn of investment in infrastructure – will help release private sector funds, kick-start schemes which have stalled due to lack of funding and hence lift the economy.
The government will underwrite funding into a range or sectors, including transport, energy, communications and education.
One major criteria that makes a project applicable for this funding is that it must be able to begin work within 12 months.
It must be shown that the project will have a positive impact on economic growth in addition to being good value for taxpayers.
WIth all these constraints in place, some officials believe that the scheme will prove to have little of its desired effect, because the projects for which the scheme would be applicable would need to be perfect in every possible respect, but somehow not quite perfect enough to get up and running entirely on its own.
Only time will tell! – The government hopes the first guarantees will be made in the autumn.