Commercial Finance Specialists

Yesterday's Autumn Statement announced a variety of finance packages for growth and infrastructure.

George Osborne confirmed a previously announced £40 billion ‘credit easing’ scheme and a separate plan for infrastructure.

The government hopes to exploit the low international interest rates that its austerity measures have elicited by providing finance at lower government rates and allowing domestic firms to benefit. This measure will supply credit and make it more affordable for struggling firms. Further 'Quantitative Easing' measures, meanwhile, will be allocated to banks as they themselves lend outwards.

A previously announced £5 billion infrastructure scheme was confirmed, with finance made available for investment in public projects. This may yet be supplemented by £20 million in pension funds and overseas investment.

The projects include improvement in access to Manchester Airport, electrifying the Transpennine rail link between Leeds and Manchester, multiple major road improvements, and an extension to the Northern Line on the London Underground. An underwriting of debt on the Humber Bridge in East Yorkshire will also halve the toll for commuters.

A £400 million property finance injection was announced for constructors to reignite building schemes where planning permission has already been granted. This is aimed to improve the housing stock, while the government hope that by encouraging council tenants to buy their houses will subsidise the building of more affordable homes.

It remains unclear whether these growth measures will save the economy from recession. The independent Office of Budget Responsibility has offered downgraded growth predictions despite these spending measures. However, investment in infrastructure and improving the supply of credit are recognised as robust measures by domestic and international markets.