The bank won鈥檛 finance the Green Deal, but it will be able to borrow - though not yet

Paul King, Chief Executive of the UK Green 黑洞社区 Council

UK-GBC welcomed confirmation that the new Green Investment Bank will be able to borrow but questioned why this should not happen from day one.

King commented: 鈥淭he Green Investment Bank is essential to plug the hole in low carbon investment and it is encouraging that this will be a proper bank, able to borrow. Sadly, the bank won鈥檛 be able to borrow from day one and it isn鈥檛 being used to finance the Green Deal, both of which are missed opportunities. However, there is a commitment from government to introduce incentives to encourage householders and businesses to take up the Green Deal - it鈥檚 just a shame this couldn鈥檛 have been set out in more detail.鈥�

Tim Smith, Planning Partner at Berwin Leighton Paisner

鈥淚n the run up to the Budget there have been many rumours and counter-rumours about the form the Green Investment Bank would take and the powers it would enjoy. For a while it looked like the power of the Treasury would remove the power for the Bank to borrow - a power that most saw as being fundamental to the new institution if it were to be a proper 鈥淏ank鈥� and critical to its success. As often happens the outcome is a mixed bag. It is another case of 鈥淵es, but 鈥︹�� The Bank will have the power to borrow, but not just yet.

鈥淪ome have questioned the utility of a Bank that cannot borrow from Day One. But set against the prospect of an irreversible decision never to allow borrowing, or (even worse) not even to establish the Bank at all, the Government鈥檚 announcement gives some cause for optimism. So looked at overall is the glass half empty or half full? In my view it is half full.