The future shape of the Green Investment Bank (GIB) has been called into question, after revelations that energy secretary Chris Huhne and business secretary Vince Cable are at “loggerheads” with Treasury officials.
According to a report in the Financial Times, officials at the Treasury are attempting to prevent the GIB from being created as a bank, due to fears that it would increase national debt, and are instead pushing for a fund, despite promises by the Prime Minister to the contrary.
Transform UK, an alliance of businesses campaigning for the creation of a fully capitalised GIB has recently written to all MPs calling for them to write to the Prime Minister to ask him to provide a full GIB, and published a full page advert in the The Guardian newspaper in order to “raise the stakes”.
Transform UK programme director Ed Matthew told MRW: “I have a feeling the Government is orientating towards a bank, but it’s not set in stone.”
“The Treasury is seriously looking at whether the bank can be created, and at the moment there’s a chance we could get this ambitious institution.”
The Treasury is now due to make a decision over the structure of the GIB by the budget and a detailed model for the GIB is expected by the end of May.
Members of the Transform UK alliance include Biffa, the Institution of Civil Engineers, the Aldersgate Group, E3G, the Environmental Industries Commission and WYG Group.