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<p>Businesses and infrastructure projects raise finance from the private market, with
important UK government support.</p><p> </p><p>The European Investment Bank Group
provides finance alongside other market participants. In 2017, the European Investment
Bank, which predominantly invests in infrastructure projects, invested EUR 1.84bn
in the UK. Its SME risk-finance focused subsidiary, the European Investment Fund,
invested EUR 61.05m in UK operations in 2017.</p><p> </p><p>As we leave the EU, we
continue to actively explore options for a future relationship with the European Investment
Bank Group. However, as the Chancellor has been clear, if we do not maintain our relationship
with the EIB group, we will be prepared.</p><p> </p><p>The government has a range
of existing tools in place to support infrastructure and SME finance. This includes,
the £40 billion UK Guarantees Scheme and the British Business Bank. British Business
Bank programmes are supporting more than £5.5bn of finance to over 78,000 smaller
businesses. The British Business Bank has capacity to make commitments this year exceeding
the combined average annual commitments from the European Investment Fund and British
Business Bank in the three years preceding the referendum.</p><p> </p><p>The government
announced at the Budget that we will review our support for infrastructure finance,
to ensure good projects continue to be able to access the finance they need. If no
future relationship with the EIB Group is in place when the UK leaves the EU on 29
March 2019, the government will provide the British Business Bank with new resources
to enable it to make up to £200m additional investment in venture capital and growth
finance in 2019/20.</p>
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