Alan Brown
Main Page: Alan Brown (Scottish National Party - Kilmarnock and Loudoun)Department Debates - View all Alan Brown's debates with the HM Treasury
(7 years, 5 months ago)
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Mr Hammond
I am afraid I am just going to repeat that I am not going to get into the weeds of trying to allocate every pound of funding that I announce in these statements to specific projects. This must be an issue for my right hon. Friend the Transport Secretary.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Green Book confirms a £1 billion shale wealth fund, but after more than four decades we are still awaiting an oil fund in Scotland. However, the big ask is on loan guarantees. Given that the Thames tideway project got a £4.2 billion loan guarantee, can the Chancellor confirm the value of loan guarantees for oil and gas as soon as possible?
Mr Hammond
I have announced today that the UK loan guarantee scheme will be extended until at least 2016. It has a very significant amount of headroom; I think the cap on it at the moment is £40 billion, and we are nowhere near using up that capacity. The important thing about the UK loan guarantee scheme is that it underpins projects at an early stage. Many projects have gone ahead without loan guarantees, but because they had a commitment on the loan guarantee they were able to proceed and then eventually were able to get funding without it. It is playing a very important role that is understated by the measure of guarantees actually issued.