Osborne frees up UK funds

The Government will underwrite up to £50 billion of investment in UK infrastructure and exports under radical plans unveiled by George Osborne today.

The Chancellor said he was using the coalition’s “hard won fiscal credibility” to free up private sector funds and kick-start the economy.

The huge initiative comes amid mounting pressure on ministers to support UK plc by loosening the purse strings. Earlier this week the IMF again cut the country’s growth forecasts to just 0.2 per cent for 2012. The first guarantees are expected to be made in the autumn.