23 May 2011 12:05:03
Treasury 'must allow GIB to borrow from capital markets'
Transform UK, the organisation which lobbied for the Green Investment Bank (GIB), has lashed out at the Treasury over its handling of the institution.
The organisation claims officials within the Treasury are trying to prevent legislation which would require the GIB to be set up next year, as well as taking steps to restrict its borrowing power.
Legislation to create the GIB would boost investor confidence by creating "permanence and operational independence", Transform UK claims.
However, it said the Treasury was against such legislation and would also not make specific designations for the bank to be able to borrow money from capital markets.
Chancellor George Osborne announced in his 2011 Budget that the GIB would receive initial capitalisation of £3 billion and it would be granted borrowing powers from 2015.
"If the GIB can only borrow from the Treasury it will never borrow. It would make it the only public bank that cannot borrow from the capital markets – it would be the joke bank of the investment world," Ed Matthew, director of Transform UK, claimed.
The Confederation of British Industry also previously called for the bank to be granted borrowing powers from the outset.