Commons Sense

House of Commons · Written Ministerial Statement

Notification of a Contingent Liability

20 July 2022 · Treasury

Proposed by Simon Clarke Con Middlesbrough South and East Cleveland

Economy

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • The Treasury is notifying Parliament about a new contingent liability related to the establishment of the UK Infrastructure Bank (UKIB) as an independent publicly owned company.
  • The Treasury intends to provide backing to the UK Infrastructure Bank to ensure it has a sovereign credit rating.
  • The UK Government Investments' Contingent Liability Central Capability has been consulted for this scheme structure establishment.

Issue summary

The Treasury is notifying Parliament about a new contingent liability related to the establishment of the UK Infrastructure Bank (UKIB) as an independent publicly owned company.

Action requested

The Treasury intends to provide backing to the UK Infrastructure Bank such that rating agencies would consider it to have a sovereign credit rating, creating a new contingent liability. The UK Government Investments' Contingent Liability Central Capability has been consulted for this scheme structure establishment.

Key facts

  • The contingent liability exceeds £300,000 and there is no statutory authority.
  • UKIB’s ambition is to offer sovereign equivalent guarantees up to an overall limit of £10 billion.
  • HMT intends to provide backing such that rating agencies would consider UKIB to have a sovereign credit rating.
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