The European Investment Bank (EIB) has halted its UK operations as a direct result of the United Kingdom’s decision to leave the European Union.
The Final nail in the coffin was hammered in after Article 50 came into effect last March.
In that time a paltry three projects were given the go-ahead and received confirmed funding, and there has been no financing for new projects since June.
This has led to a severe shortage of funding for new schools, social housing, and hospitals, something the UK government will need to rectify forthwith.
The real kicker being that the UK is a 16% shareholder in the EIB, but the Bank is an EU entity.
The EIB is the biggest provider of capital for Crossrail, housing association building programmes, and the priority schools building programme.
Housing Finance Corporation chief executive Piers Williamson said he did not expect any investment for British building projects in the near future.
The EIB decision will also have a huge impact on the educational sector as UK universities have come to rely on EIB Funding to build modern learning spaces and research facilities that have made British universities internationally competitive.
Mr. Hammond, Chancellor of Exchequer has said the government was increasing options available to companies by bringing forward £400 million of new investment in the British Business Bank.
Tech UK believes this money would not have the same impact or provide the same opportunities as the EIB or the European Investment Fund (EIF), which has also stopped lending to the UK.
Energy UK chief executive Lawrence Slade said it was the same for energy projects.
A spokesman for the Treasury said that it was working to resolve the situation, as companies should be able to access EIB investment for British building projects for as long as the UK remained part of the EU.
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