This seems a terrible idea. (source FT)
“Plans to use money from the sale of government assets to provide the riskiest of equity investment in green energy projects such as offshore wind and carbon capture have been shelved by the government.
The move comes amid signs of tension between Vince Cable at the business department and George Osborne at the Treasury over the scale of the coalition government’s planned green investment bank and its precise role.
Some £1bn ($1.5bn) of sales proceeds were to be used as “the riskiest of risk capital” to help attract a matching £1bn from the private sector by removing some of the biggest risks from green energy projects. The aim was to kick-start the further tens of billions of pounds of investment needed from the private sector..
…the idea might be revived when the government settles on plans for a green investment bank later in the year, although it seemed more likely the proceeds from asset sales – which the government still plans to follow through – would be used to pay down debt.”
These are exactly the sort of cuts we should not be making.