This proposed law seeks to place the UK Infrastructure Bank on a statutory footing, giving it a specific set of powers. The bank is currently operating on an interim basis. Its purpose is to invest in infrastructure projects on behalf of the government and attract private sector funds for the same purpose.
UK Infrastructure Bank Bill [HL] (320 KB , PDF)
On 24 May 2022, the House of Lords is scheduled to debate the second reading of the UK Infrastructure Bank Bill.
The aim of the bill is to place the UK Infrastructure Bank, currently operating on an interim basis, on a statutory footing. The bank’s purpose is to invest in infrastructure projects using both public sector funds and private sector funds that it will seek to attract. It has two strategic objectives: to use its investments to help tackle climate change; and to support regional and local economic growth.
The bill’s provisions would:
In 2018, the National Infrastructure Commission (NIC) recommended establishing a UK national infrastructure bank to replace the functions of the European Investment Bank (EIB) after Brexit. A government consultation between 2019 and 2020 also found support for such a body. Responding to the consultation, the government set out a new national infrastructure strategy that included a commitment to establishing a “major new national infrastructure bank”. The bank would operate with a “high degree of operational independence” but within a mandate set by government.
In 2021 and 2022 a series of documents fleshed out the bank’s mandate and design. Proposals included setting its financial capacity at £22bn, consisting of £5bn of equity, £7bn of debt and £10bn of guarantees. Alongside this public funding, the bank is expected to attract £18bn of private sector finance. It is also required to provide advice to local authorities on developing and funding infrastructure.
Initially, the bank’s objectives covered investments in a range of sectors. Since the Russian invasion of Ukraine, the government has asked it to give priority to projects aimed at increasing the security of the UK’s energy supply.
The Labour Party has also called for a national infrastructure bank although it argues the existing proposal is not sufficiently ambitious. Other commentators have also discussed the appropriate size of the bank. Other issues debated include whether its mission should encompass delivering a ‘just transition’ to net zero and what parallels can be drawn from a previous public infrastructure investment institution, the Green Investment Bank.
UK Infrastructure Bank Bill [HL] (320 KB , PDF)
This briefing is the fifth of a series on the post-war history of the UK economy. The series proceeds decade-by-decade from the 1950s onwards, providing an overview of the key macroeconomic developments of each decade. This fifth briefing looks at the 1990s. In this decade the UK economy settled into a period of low inflation and steady growth; however, living standards growth was lower and more regionally concentrated than in previous decades.
The Budget Responsibility Bill would require ministers to request an assessment from the Office for Budget Responsibility (OBR) for every major fiscal announcement and give the OBR the power to decide to publish one if the minister failed to request it. This follows the September 2022 ‘mini-budget’. The statement included plans that would have resulted in a projected £45bn reduction in tax income. It did not have an accompanying OBR assessment.
The new Labour government has committed to the expansion of offshore wind energy. This commitment has been welcomed by the offshore energy industry and by environmental organisations. However, concerns remain about how these plans might be achieved in practice while maintaining and improving the marine environment. This briefing considers some of the potential obstacles to achieving the expansion in offshore wind.
