Darling delivers pre-budget report

In his speech to parliament, Darling said that the skills of the UK’s workforce combined with low inflation and interest rates provide a strong platform for Britain to meet long-term sustainable growth.

‘It is why we are judged as one of the best locations to do business and attract inward investment,’ he said. ‘I am determined to build on these strengths by maintaining our leadership in the low-carbon sector, boosting investment in our national infrastructure and skills and supporting our world-class hi-tech industries.’

Darling said that the government would support at least £160m of public and private investment in low-carbon projects and that it would invest £90m in the European Investment Bank’s new 2020 fund, which will provide €6.5bn (£5.9bn) of finance for green infrastructure projects.

‘In addition, we will double our commitment and finance for carbon-capture and storage demonstration projects to make us world leaders in this vital area,’ he added.

Further low-carbon plans include an annual average, tax-free payment of £900 to householders with home wind turbine or solar panels that plug their excess power into the national grid.