Green Investment Bank bound for Edinburgh and London

North West towns and cities have failed to secure the coveted office for the Green Investment Bank, which will instead be based in Edinburgh and London.

Business Secretary Vince Cable said on Thursday the headquarters of the GIB will be located in Edinburgh, with the GIB's main transaction team based in London.

Cables statement said: "This arrangement will enable a greater commercial reach nationally than could be achieved from one location."

There were 32 towns and cities in the country bidding for the prize. The criteria for selection were that the location offer the GIB the best chance to recruit and retain the specialist staff needed to run the organisation; enable the GIB to work closely with other parties involved in deals as well as other investment bodies, project developers and green technology providers, and; ensure that the GIB is cost effective.

Cable said: "Harnessing the strengths of Edinburgh and London will support the Green Investment Bank's ambition to become a world leader. Edinburgh has a thriving green sector and respected expertise in areas such as asset management. London, as the world's leading financial centre, will ensure that the GIB's transaction team can hit the ground running.

"This decision will allow the GIB to operate effectively and achieve its mission of mobilising the additional investment needed to accelerate the UK's transition to a green economy."

The next step for the GIB is the recruitment of the chairman and senior independent director so that it will be in a position to be fully operational this autumn, subject to state aid approval for the GIB. The GIB is expected to employ 50-70 full time equivalent staff across the two sites.