Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

£500m local projects pot announced

  • Comment

Ministers have pulled together a £500m pot to create local funds across England to develop key infrastructure and drive growth, a senior Liberal Democrat has announced.

Chief secretary to the Treasury, Danny Alexander, told the Liberal Democrat party conference the Growing Places fund would provide a “one-off up-front capital investment to kick start developments” that are stalled due to cash flow problems or lack of confidence.

The Times reported half the funding will comes from unspent reserves in the Department for Communities & Local Government and Department for Transport budgets while the rest will come from Treasury funds normally reserved for times of war.

Mr Alexander said the fund was about “putting local areas in the driving seat, enabling local government to invest in the key strategic infrastructure projects that they have identified as priorities and getting people into work”.

Mr Alexander also confirmed that councils needing to buy their way out of the housing revenue account subsidy system are to be offered special finance arrangements, as revealed by LGC earlier this month.

The Public Works Loan Board will offer reduced interest rates which will create “a £100m boost for local authority housing”.

He said: “I have listened to local authority concerns that this is a one-off transaction within the public sector and should be financed as such.

“This will free up £100m a year that councils involved in this transaction will be able to reinvest in housing.

“Unlocking local growth by freeing business to grow, driving forward local infrastructure, and freeing councils to support housing. Liberal Democrats in government, on your side.”.  

  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.