Key Facts

• Clause 1 of the Bill refers to the company incorporated as the UK Infrastructure Bank.
• Richard Fuller tables amendment 10 to add a financial return objective for the Bank's shareholders.
• Labour Members are notably absent from the Committee.
• Amendment 10 aims to add a requirement for long-term return to shareholders (UK taxpayers).
• Amendment 11 focuses on the bank's role in additionality.
• The UK Infrastructure Bank mentions interest in electric vehicle charging points, building retrofitting, and scaling storage technologies.
• The UK Infrastructure Bank aims to tackle climate change and support regional economic growth.
• Labour proposes adding a third objective: creating long-term financial returns for shareholders.
• The Government sets a financial return target of 2.5% to 4% by the end of 2025-26.
• Amendment 17 aims to clarify the Bank’s objectives in supporting regional and local economic growth.
• Amendment 18 would create a third objective for the Bank to support supply chain resilience and the UK’s industrial strategy.
• The Office for Budget Responsibility has stated that the bank will have no effect on growth with assets of only 0.1% of GDP annually.
• Scotland's climate change target is 2045 compared to the UK's 2050.
• The UK Infrastructure Bank's strategic objectives include tackling climate change.
• Amendments 17 and 18 were tabled by opposition parties.
• The amendments aim to broaden the definition of 'public authority' for the bank's lending capacity.
• Other public authorities could include existing bodies or new ones created by local authorities or Government Departments.
• Amendment 8 seeks to clarify that the bank can provide loans to a wider range of public authorities beyond local authorities and Northern Ireland Departments.
• Government amendment 1 would remove 'nature-based solutions' and 'structures underpinning the circular economy' from the definition of infrastructure.
• Clause 2(6) focuses on improving productivity, pay, jobs and living standards while reducing geographic inequality.
• The government contends that statutory steer rather than primary legislation is more flexible for guiding the bank's objectives.
• Amendment 3 requires consultation with devolved authorities if regulations under clause 2(7) fall within their legislative competence.
• Government amendment 4 mandates consultation before including matters in a strategic steer that are within devolved legislative competence.
• Amendment 6 defines 'appropriate national authority' as Scottish Ministers, Welsh Ministers, or Northern Ireland's Department for Infrastructure.
• Clause 3 gives HM Treasury the power to issue a strategic steer to the UK Infrastructure Bank.
• The first strategic steer was issued by the Chancellor in March 2023.
• The inaugural strategic plan of the bank was published in June 2023.
• A new strategic steer is expected only once per Parliament.
• The UK Infrastructure Bank is required to update its strategic plan when a strategic steer is issued.
• The strategic steer was put in place on 18 March by the Chancellor.
• The strategic steer includes priorities such as energy security, low carbon projects, and improving building efficiency.
• Clause 5 relates to financial assistance.
• Clause 6 is about the bank's governance structure.
• Geraint Davies is discussing these clauses in the context of the overall bill and previous amendments.
• Clause 7 concerns the number and composition of directors.
• The current proposal allows up to 14 directors.
• Geraint Davies proposes at least four must be non-executive directors.
• Richard Fuller's amendment aims to cap the number at eight.
• Amendment 5 seeks to require UKIB’s board to appoint one or more directors responsible for ensuring that the interests of devolved Administrations are considered in decision making.
• Labour supports this amendment to ensure full consideration of devolved authorities' interests through the bank's administration.
• The amendment aims to address the strong interests of Scotland, Wales and Northern Ireland in infrastructure investment within their respective nations.
• The UK corporate governance code already has guidelines about workforce involvement in board governance.
• Marcus Johns from IPPR North argues that tax havens 'hollow out our economy, keep wages low, hold communities back, and enable money to be syphoned away into a globalised system of extraction.'
• A Labour Government would support British industry, supply chains, and ensure trade unions have access to workplaces with decent job conditions.
• The intention behind the board composition is to provide flexibility.
• Previous comments were made about a lack of worker representation on the board.
• Clause 7, as amended, is ordered to stand part of the Bill.
• Clause 8 is also ordered to stand part of the Bill.