Councils fear Brexit will trigger loss of billions in EIB infrastructure funding

The European Central Bank

Local Government Association seeks government assurances that it will fill funding gap if EIB stops backing UK projects.

The loss of EIB funding would be a significant blow. The EIB invested €13.5bn (£12.8bn) in British infrastructure in the 18 months leading up to the EU referendum, according to the Local Government Association (LGA). Because the bank is owned by the EU, it is able to provide competitive loans for projects.

Worried about such a major source of funding drying up after Brexit, the LGA called on the government to guarantee “equivalent lending alternatives to the European Investment Bank” earlier this month. It said there had already been a massive reduction in finalised deals since the Brexit vote.

It remains to be seen whether the government will step up to fill any funding gap.

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