- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 18 Dec 2017
UK Guarantee Scheme for infrastructure
UK Guarantees is a government scheme designed to kickstart crucial infrastructure projects. It takes the form of an unconditional and irrevocable financial guarantee from the Treasury to lenders that they will be repaid in full and on time for their investments in infrastructure projects, regardless of the project performance.
With the Treasury acting as guarantor, the Scheme covers a range of different underlying borrowing structures, from project financing to corporate lending in support of infrastructure. The level of risk is determined by an internal Treasury Risk Committee.
Despite market conditions improving since 2012, the Chancellor announced in the Autumn Statement 2016 that the Scheme’s availability would be extended to at least 2026.
The Treasury, in providing guarantees, uses a test that the guarantee fee must represent a market price for the risk, rather than considering the project’s overall value for money. This has caused some, such as the National Audit Office, to raise concerns about the rigorousness and objectivity in assessing whether guarantees for new infrastructure projects are genuinely needed, and whether the public value they are likely to bring will be significant.
 Related articles on Designing Buildings Wiki
Featured articles and news
There are many ways of classifying types of building. Have a look at our range of building articles.
BSRIA have launched the 'major update' of the go-to design framework guide for building services.
How to get results with building life cycle assessment.
Government publishes a prospectus inviting proposals for new 'garden communities'.
The Morandi motorway bridge in Genoa collapses during rainstorm while undergoing maintenance works.
'Developed design' is a phrase coined by the RIBA for their 2013 Plan of Work. But what does it actually mean?
New green paper published aiming to rebalance the relationship between landlords and residents and tackle stigma.
RIBA calls for a comprehensive ban on combustible materials.
Lump sum contracts can be referred to as ‘fixed price’ contracts, although strictly this is not correct. Find out more here.
Ramboll offer guidance to civil engineers on how to make projects 'off-site ready'.
Government announces its Rough Sleeping Strategy, with further funding for social housing.