Budget 2010: Green Investment Bank welcomed

THE CHANCELLOR outlined plans for a new £2bn Green Investment Bank to support the development of low-carbon energy and transport.

The fund will include £50m to support businesses working within the green technology sector.

Mr Darling said the half the funding would come from the sale of existing assets, including the Channel Tunnel rail link, with the remainder backed by the private sector.

He said: “This equity will unlock billions more of finance from the private sector.”

Mr Darling talked about the need to replace ageing nuclear power stations and to invest in renewable energy, adding that the UK could lead the way in wind power and other renewable energy methods.

He also announced up to £60m for the development of port sites to support offshore wind turbine manufacturers looking to locate new facilities in the UK and secure low carbon manufacturing jobs.

He said: “Investment in traditional and new infrastructure is vital if business is to grow and the economy is to succeed.”

He added: “It is the role of modern government to work with key sectors.”

Plans were also announced to halve company car tax for ultra-low carbon cars for five years from April 2010, which Mr Darling said would contribute to making the UK one of the best places in the world to design and build low-carbon vehicles.

However, the green lobby will not welcome plans to stagger fuel duty increases between April and January 2011.