Vince Cable proposes new banking structure

Vince Cable has proposed the formation of a new kind of banking operation - a National Infrastructure Bank.

Speaking to the Civilisation Congress 2009, the Liberal Democrat Treasury spokesman said that the bank would improve the UK's infrastructure by leveraging public funds with private capital.

Mr Cable claimed that the current PFI model was "no longer fit for purpose" due to its dependence on banking finance, which is becoming more expensive.

He stated his belief that implementing his proposal would help make Britain's transport infrastructure "the envy of the world".

"A National Infrastructure Bank would also help to provide jobs, which in this time of soaring unemployment is more important than ever," he added.

Mr Cable said that the work of the European Investment Bank and the World Bank had already proved such an idea was feasible.

Earlier this month, shadow chancellor George Osborne told the Observer that he plans to scrap PFI if the Conservatives take power in the next general election.

Updated: 25 November 2009.
Categories: banking-and-financial-services, market-and-industry-news.