The government will start by investing up to GBP1bn from the sale of infrastructure-related assets. It will seek to match this with at least GBP1bn of private sector investment. Infrastructure UK will publish a consultation on the establishment of the Green Investment Bank in the summer.

The chancellor also launched a competition for up to GBP60m of funds to develop sites close to ports that will support manufacturing for the offshore wind industry. Site developers will be able to bid for access to the fund.

The competition will help the UK secure major operations in offshore wind manufacture and assembly, which is expected to directly create hundreds of skilled jobs with thousands more in the supply chain.

Other measures revealed as a part of Budget 2010 include: launch of UK Finance for Growth to streamline GBP4bn of existing financial support for small and medium-sized businesses, halving the rate of company car tax for ultra-low carbon cars, and a commitment to reduce government departments’ carbon emissions by at least 30% by 2020.

Ed Miliband, energy and climate change secretary of the UK, said: ” This budget will help propel the UK further and faster towards the green industries of the future. The green investment bank, new support for wind turbine manufacturing sites and the first findings of our work to reform the energy market are all critical.”