Clause 2 - Objectives and activities

Part of UK Infrastructure Bank Bill [Lords] – in a Public Bill Committee at 10:15 am on 22 November 2022.

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Photo of Andrew Griffith Andrew Griffith The Economic Secretary to the Treasury 10:15, 22 November 2022

Clause 2 is of central importance to the policy remit in which the bank will operate. I think that is why we have heard so many different—sometimes contrasting—views about how prescriptive that remit should be. The clause sets out the bank’s objectives and activities, as well as an inclusive definition of infrastructure, which is central to its scope—it is the UK infrastructure bank, after all. The clause also creates delegated powers to enable the Treasury to change the bank’s activities or the definition of infrastructure using secondary legislation under the affirmative procedure, so Parliament will have its say. The bank’s objectives to help the Government meet their climate change ambitions and to support levelling up across the UK are currently set out in the framework document. Clause 2(3) puts those on a statutory footing, which we hope sends a signal to the market about the Government’s commitment to these policy aims and the bank’s central role in helping deliver them.

Clause 2(4) sets out the bank’s activities, which are to provide financial assistance to projects wholly or mainly related to infrastructure, to provide loans to relevant public authorities, and to act in an advisory capacity. Most importantly, the subsection makes it clear that the bank is permitted to lend directly to local authorities, something it is unable to do currently.