The UK is to set up an Infrastructure Bank with £12bn of equity and debt capital to finance local authority and private sector projects, including in renewables.
The bank, which will be based in Leeds in northern England, will support projects that help meet the government’s climate change and regional growth objectives.
As well as the £12bn in equity and debt the bank will be able to issue up to £10bn of guarantees. Chancellor Rishi Sunak said it would support investment that totalled £40bn.
The bank will offer a range of finance tools, including debt, hybrid products and equity, as well as the guarantees.
It will offer loans from the summer to local authorities for strategic infrastructure projects.
An advisory function will also be set up to help with the development and delivery of projects.
The government said the bank will be operating in an interim form later in the spring of this year.