In the first parliament LIFE will introduce legislation to setup a National Infrastructure Bank (NIB). The remit of this bank will be to fund infrastructure projects for social ownership.
To stimulate the investment of funds in this bank we will introduce National Infrastructure Bonds. National Infrastructure Bonds will be available with a face value of £1 and pay interest to bondholders at a rate equal to the UK government’s average 10 Year Treasury Note coupon for the year.
Money invested in National Infrastructure Bonds shall not be subject to Income Taxes until such time as it is cashed out. Interest earned on National Infrastructure Bonds shall not be taxed if it is reinvested in National Infrastructure Bonds.
NI Bonds will be subject to a maximum withdrawal limit of 10% in a year, or the National Median Annual Wage, whichever is higher.
Climate Mitigation Fund
A special fund to receive proceeds from the carbon tax will be established and managed by the NIB. Projects financed by this fund must be publicly owned climate impact mitigation projects, or energy generation projects that reduce GHG emissions.
Funds will be made available as loans to Communities and Regions at an interest rate 1% higher than the UK government’s average 10 Year Treasury Note coupon for the year, and for maximum terms of 25 years. There will be no prepayment penalties.
The first priority for the National Infrastructure Bank will be to help Communities fund the build of their Community Centers and Assembly facilities.
At an average cost of £50/sq.ft. and an average of 500 sq.ft. per person, £10Bn of investment in social housing builds could add housing for 400,000 people a year.
By pushing control down to Communities, LIFE supports a planning system which is truly democratic, prioritises brownfield development, and delivers genuinely affordable housing where it is needed.
National Communications System
£7Bn a year for 4 years (the equivalent to China’s spend) would provide a nationwide fibre optic network capable of delivering high speed Internet to all and supporting the new, secure xID network.
Upgrades to our energy network, to deploy smart meters and other components of a smart grid capable of making renewable generation work for all of us, will cost £3Bn a year.
LIFE’s policies provide the flexicurity necessary to support the most innovation intense economy possible. The NIB can provide a mentoring and supporting role by helping SMBs capitalise on their innovations.