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Notification of a Contingent Liability

20 July 2022

Proposing MP
Middlesbrough South and East Cleveland
Type
Written Ministerial Statement
Department
Treasury

At a Glance

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.
Assessment & feedback
Summary accuracy