Cable unveils plans for national infrastructure bank

Liberal Democrat shadow chancellor Vince Cable has revealed his party’s proposals for a national infrastructure bank.

He claimed that the UK needs a way of cutting the cost of capital - through government guarantees - while also attending to the demands of private savers for long-term investment.

Speaking at the Civilisation Congress 2009, Mr Cable explained that a national infrastructure bank would meet these requirements.

He added that such an organisation would benefit both institutional investors, such as insurance companies and pension funds, as well as those from retail.

According to the Liberal Democrats, such a mechanism is necessary for the country’s long-term economic growth.

Mr Cable said that there are already UK institutions with expertise in this area, but they are currently in a fragmented form.

He stated: ’What I am suggesting would bring the current government facilities together, rather than reinventing the wheel.’

Earlier this week, party leader Nick Clegg told the CBI conference that the financial industry needs to be stabilised, decontaminated and re-balanced.
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