The UK budget for 2011 has been released on Wednesday. In the budget, Chancellor George Osborne announced that a new bank will be launched next year to promote green investment.
Green investments are the traditional investment vehicles such as stocks, mutual funds in which underlying business is somehow involved in operations aimed at improving the environment
The main motive of the launch of the bank is to make green investment more attractive to increase its demand among people.
Edinburgh West Liberal Democrat MP, Mike Crockart said that the announcement of opening a new bank is just good news but it would be better if “we will operate a fully functional bank from the beginning”.
He said that after London, Edinburgh is the only feasible place for the establishment of new bank.
Edinburgh North and Leith Labour MP, Mark Lazarowicz said, "It's good to see the earlier start, but the fact it will only be a lending institution rather than a fully-fledged bank from the beginning is concerning".
The chancellor said that the bank would set ground prices of carbon and will help in increasing the initial capitalization of the green investment bank.
Scottish Government Finance Minister, John Swinney criticized the recent budget by saying that budget is failed to deal with Scottish jobs, as 1p a litre cut in fuel tax would not manage for the 3p per litre being added in VAT.