Oliver Wright, Policy Editor

Projects affected include a £500 million loan to improve signalling on London UndergroundPress Association

Plans to build 300 social homes, an upgrade to the London Underground and support for economic development in the northeast are among public sector projects worth £1 billion put on hold because of Brexit.

The projects were all to be funded by the European Investment Bank (EIB) but have yet to be processed because of the bank’s decision to effectively freeze its UK lending operations.

Among the projects that are “under appraisal” include an application for a £100 million loan by the social housing provider Stonewater, which was submitted in January. Stonewater said it may have to build about 300 fewer homes than intended unless alternative funding sources could be found.

Other projects affected include a £500 million loan to improve signalling on the Underground,…