MPs push to create new green bank in city region

The coalition Government’s Green Investment Bank will have an initial £3bn of taxpayers’ money to spend on eco-friendly projects.

The Leeds City Region, a collaborative partnership of 11 local authorities across North, South and West Yorkshire, is up against rival bids from Edinburgh, Manchester, London and Bristol.

But unlike its rivals which represent just one city, the Leeds City Region has the backing of a number of leading Yorkshire cities and towns including Bradford, Halifax, Wakefield, Skipton, Harrogate, York, Selby, Huddersfield and Barnsley.

At the Westminster launch yesterday, Leeds North West Liberal Democrat MP Greg Mulholland said the bid would benefit the region as a whole.

“It would be hugely beneficial for the whole of the Yorkshire and Humber region. We regard this as a Yorkshire bid.

“Leeds is the second biggest financial centre outside London and it’s the obvious location for the Green Investment Bank. I really hope the whole of the region gets behind it.”

Mr Mulholland has been working in close co-operation with Julian Smith, Conservative MP for Skipton and Ripon, who said the Leeds City Region and the wider Yorkshire region is already leading the way with many pioneering renewable energy projects from carbon capture to biomass and hydro.

Hilary Benn, Labour MP for Leeds Central, added: “We know we have to change the way we do things. In Leeds City Region we have a lot of pioneers and innovators doing it already.”

Paul Hamer, member of the Leeds City Region Local Enterprise Partnerhip and chief executive of WYG, told MPs there are three reasons why Leeds should win the bid.

“One, we have the location with great roads and rail links. Our region is naturally at the heart of the UK.

“Secondly, we have the second largest financial sector and manufacturing sector outside London.

“Thirdly we already have the expertise. We are already leading in green innovation,” he said.

Also speaking at Westminster yesterday were representatives from coal-fired power station Drax, which aims to become a predominantly renewable generator, and green construction company Clugston.

Mr Mulholland said: “The Green Investment Bank is a big opportunity and we have an incredibly strong case. We have the people, the skills, the location and the value-for-money infrastructure, which brings costs down. At a time of economic difficulty that has to be a huge factor.

“This bid ticks each and every box in the Government’s criteria in a way that other cities simply can not.”

Ministers expect the bank’s investments to fuel economic growth and create skilled jobs.

The taxpayer will provide £3bn in initial funding to the bank, which will be able to borrow in the capital markets from 2015.

The Leeds City Region is pointing to its strong track record of existing projects such as the carbon capture and storage pilot at Hatfield Colliery, the forthcoming offshore wind farm manufacturing plant at Hull and one of Europe’s largest biomass-fired power stations at Drax near Selby.

The Yorkshire bid is being backed by C02 Sense Yorkshire, the not-for-profit company that supports and invests in green businesses, and the region’s universities.

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