The government is facing a multibillion-pound shortage of funding for new schools, hospitals and social housing after a decision by the world’s biggest public lender to freeze its UK operations because of Brexit.
The Times has learnt that the European Investment Bank, which financed £6.9 billion of public infrastructure projects in Britain last year, has effectively imposed a moratorium on new long-term loans to the UK.
The decision was taken after the government triggered Article 50 in March. Since then only three UK projects have had funding signed off and no projects have been financed since June.
In the first three months of the year the EIB approved nine projects worth a total of £1.4 billion.
The moratorium has been confirmed by sources within the