Work and pensions secretary Stephen Crabb has revealed plans for a £100bn infrastructure fund, backed by a plan for five years of gilt issuance
Work and pensions secretary Stephen Crabb has promised to fund £100bn of infrastructure investment over five years through the sale of government bonds if selected as Conservative leader.
Crabb is currently fighting home secretary Theresa May, justice secretary Michael Gove and Tory backbencher Liam Fox for the right to lead the party, with the first candidate set to be eliminated on Tuesday.
Partnering with business secretary Sajid Javid, Crabb has now promised to issue £20bn of long-dated gilts annually for the next five years to create a “Growing Britain fund” targeted at projects including broadband networks and flood defences.
Planned infrastructure spending would also be brought forward, with the electrification of the TransPennine Manchester to Leeds railway first in line.
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The funding would be driven by record low gilt yields, giving the government similarly low cost of borrowing.
Announcing the “Growing Britain Fund” Crabb said: “It is right that we focus on our exit negotiations, but we must also think about the steps we should take to take advantage of the opportunities that Brexit can bring.
“My team has a plan and is ready to take the strategic decisions needed to provide confidence in the UK now and in the years to come.”