Website of the UK government

Budget 22 June 2010

The March 2010 Budget was the final Budget for the last Labour government. George Osborne, Chancellor of the new coalition government, delivered his first Budget on Tuesday 22 June 2010. The new Budget may affect some of the information below. To read about the June Budget, click the orange button.

Supporting low-carbon growth

The Chancellor unveiled a number of measures designed to support the move to a low-carbon economy.

Green Investment Bank

A major announcement in Budget 2010 is the government's plan to create a Green Investment Bank. The bank will support investment in low-carbon infrastructure projects. It will bring together public and private sector capital, and operate on a commercial basis.

The government will start by investing up to £1 billion from the sale of infrastructure-related assets. It will seek to match this with at least £1 billion of private sector investment.

The Green Investment Bank’s mandate will be to invest in the low-carbon sector. Infrastructure UK will publish a consultation on the establishment of the Green Investment Bank in the summer.

Other measures in support of a low-carbon economy

Other measures announced as part of Budget 2010 include:

• launching UK Finance for Growth to streamline £4 billion of existing financial support for small and medium-sized businesses, which will include support encouraging businesses to commercialise low-carbon technologies
• £60 million for the development of UK port sites to support offshore wind turbine manufacturers looking to locate new facilities in the UK
• halving the rate of company car tax for ultra-low carbon cars
• a commitment to reduce government departments’ carbon emissions by at least 30 per cent by 2020
• a commitment to reform the energy market to provide clean, secure and affordable energy in the long-term

Landfill tax increase

As of 1 April 2014, there will be an £8 per tonne increase in the standard rate of landfill tax, to encourage alternatives to landfill.