Over 20 cities in race for Green Investment Bank

LEEDS will face competition from Sheffield and as many as 20 other cities in the battle to host the Government’s new £3bn Green Investment Bank.

Ministers say a decision will be made by the end of March on where to base the bank, which is designed to lever in private investment for green projects.

Although much of the attention so far has focused on Leeds’s bid, which has support from MPs across Yorkshire who have already met Ministers and held a Westminster debate to push their case, officials in Sheffield yesterday confirmed they also plan to bid.

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Business Secretary Vince Cable yesterday fired the starting gun on the race to win the bank, which will see the cities up against the likes of Manchester, Bristol, Liverpool, Cardiff, Edinburgh, London, Nottingham and Newcastle. Although the bank will only bring a small number of jobs, locating it in the North would be seen as a symbol of the Government’s desire to rebalance the economy.

Mr Cable said the winning bid must be able to recruit and retain specialist staff, offer good value for money and allow the bank to work closely with other parties on deals. He is also setting up a team – UK Green Investments (UKGI) – within Government to invest in green infrastructure while the bank comes into being. It will have £200m to invest in smaller waste infrastructure and non-domestic energy efficiency, also co-investing in offshore wind projects.

Mr Cable said: “I want to set up the Bank as soon as possible, so it can start accelerating investments in these key sectors and help British companies take advantage of these opportunities. Setting out the priorities for the Bank and establishing UK Green Investments for April 2012 are a major step forward.”

The Green Investment Bank’s first priorities will include investing in offshore wind power generation, a decision which could strengthen the case for a Yorkshire base as there are ambitious plans to manufacture turbines around the Humber and wind farms off the East Yorkshire coast.

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The Yorkshire Post’s Give us a Fair Deal campaign has urged Ministers to choose the region to base the bank, which will also prioritise commercial and industrial waste processing and recycling, generation of energy from waste and non-domestic energy efficiency.

Campaigners in Leeds claim its financial sector, green expertise and low costs make it the ideal host. Sheffield Council has refused to reveal more details of its bid.

But last night Manchester’s bid team faced embarrassment when its website – not yet officially launched – was spotted online by the Financial Times featuring sections which appeared to have been lifted directly off the Leeds City Region site.

The site, which is believed to be still being built, included one section saying “Leeds City Region – the perfect location for the Green Investment Bank”, but last night it was offline again.

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Skipton and Ripon MP Julian Smith, who is backing the Leeds bid, said: “Imitation is the best form of flattery and Manchester’s clearly feeling on the defensive.

“We’ve got a very compelling case and we’re towards the front of the pack, but we’ve got to work hard to make sure we articulate why with the second largest financial centre in Britain and more green related projects than anywhere else in the country we’re the best place to locate the bank.”

Paul Hamer, of Leeds City Region Local Enterprise Partnership, said: “Leeds City Region is the natural location for the Green Investment Bank, with a compelling business case that fits exactly with the criteria announced by the government.”

Mark Goldstone, head of business representation at Leeds, York & North Yorkshire Chamber of Commerce, said: “The Leeds City Region has the largest financial, services sector outside London and local firms are already advising on major renewable projects across the world, from Selby to South Korea. We have the expertise in place to ensure that the bank is a commercial success and effective in delivering a greener UK economy.

Sheffield City Council said it would prepare a submission.