Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Albert Owen

Tuesday 28th February 2017 Commons Chamber

[Mr Philip Hammond]

The most economical way for the Government to fund infrastructure investment is through conventional gilts—that is the lowest cost to the public purse. However, the Treasury backs infrastructure bonds and loans issued by the private sector through the UK guarantees scheme. At autumn statement, I announced that that scheme would be extended until at least 2026. It has played a vital role not just in underwriting and guaranteeing finance for projects, but in allowing a large number of projects to go ahead without the Government guarantee, simply by having underwritten the financing during the programme phase.

[Albert Owen (Ynys Môn) (Lab)]

What steps is the Chancellor—I agreed with his answer on clean-energy long-term projects—taking to support and facilitate with the Welsh Government and with the Department for Business, Energy and Industrial Strategy the Swansea Bay tidal lagoon project, following the Hendry review?

[Mr Hammond]

We have received the Hendry review report and we are considering the merits of the Swansea Bay tidal lagoon project, including discussions with the Welsh Government.