Recommendations & Conclusions
8 items
2
Recommendation
Thirty-Fourth Report - The Creation of …
Accepted
The Treasury and the Bank have not yet put in place the conditions necessary for the Bank to be a successful and long-lasting institution. The government wants the Bank to be a “long-lasting institution”, providing financing for infrastructure projects well into the future. The £22 billion made available to the …
Government response. The government agrees and states that the Bank will provide the requested information to Parliament by the end of September 2023 and in March 2024, then information will be provided through the Annual Reports and Accounts process, and that the …
HM Treasury
3
Recommendation
Thirty-Fourth Report - The Creation of …
Accepted
We are not convinced the Bank has a strategic view of where it best needs to target its investments. The Bank’s 10 deals to date have mostly been relatively conventional investments, including seven loans. While the Bank’s early deals reflected a sensibly cautious approach, it is not yet capable of …
Government response. The government agrees and states that the Bank published its first strategic plan in June 2022, setting out the investment strategy and priority areas, and plans to publish a further update in summer 2023, which will be sent to the …
HM Treasury
4
Recommendation
Thirty-Fourth Report - The Creation of …
Accepted
The Bank’s advisory function remains in the early stages of development and uncertainty remains on how it will be funded and how smaller local authorities will benefit from its activities. The Treasury intends the Bank to provide advisory services to local authorities regarding infrastructure projects. This function is currently in …
Government response. The government will provide the requested information later in Spring 2023 after completion of the pilot projects in Bristol, Greater Manchester, and West Yorkshire Combined Authority. Recognising that the needs of different size local authorities will vary, the Bank has …
HM Treasury
5
Recommendation
Thirty-Fourth Report - The Creation of …
Accepted
Maximising the Bank’s impact will depend on close cooperation with government departments, but it has not yet worked out how this will operate in practice. The Treasury intends the Bank to play an important role in achieving key elements of this government’s wider agenda on net zero and levelling up, …
Government response. The government agrees and states a lead point of contact within the Bank has been assigned for key departments to understand government priorities and originate investment opportunities, supported by engagement with senior officials and examples of partnerships, and are now …
HM Treasury
6
Recommendation
Thirty-Fourth Report - The Creation of …
Accepted
The Bank has not fully set out how it will measure and report its performance, and how it will evaluate its activities to ensure that it can demonstrate additionality. Evaluation is crucial to ensuring the Bank delivers additionality and that the benefits justify the costs of creating it. The Treasury …
Government response. The Bank will work with the Treasury and UKGI to ensure that future metrics are clear and stretching to ensure the Bank continues to deliver against its strategic objectives, and across its remit. The Bank has already published guidance in …
HM Treasury
7
Conclusion
Thirty-Fourth Report - The Creation of …
Accepted
The Treasury told us it took a “phased approach” to the Bank’s set-up with “checks and balances in place” to ensure it would be delivering value for money to the taxpayer.17 The Treasury seconded officials to key Bank posts, and initially had “very tight controls” over the Bank, including retaining …
Government response. The Treasury ensured clear governance procedures were in place before opening the UKIB for business, including an agreed Framework Document and appointment of interim Board, with permanent Chair in post, and maintained close oversight as UKIB started to grow its …
HM Treasury
16
Conclusion
Thirty-Fourth Report - The Creation of …
Accepted
The Bank was set up to address market failures and fill gaps in financing for infrastructure investment.41 The Bank told us that it can do this by taking risk that the market is just not willing to take, for example in “first-of-a-kind” technology. It also told us that it can …
Government response. The Bank has published its first strategic plan in June 2022, which sets out the Bank’s investment strategy. The Bank has already made 12 deals worth £1.16 billion across a range of priority sectors and have further deals in the …
HM Treasury
17
Conclusion
Thirty-Fourth Report - The Creation of …
Accepted
The Bank’s 10 deals to date have mostly been in relatively conventional investments.45 This total consists of seven loans and three equity investments made through funds rather than directly. The Treasury told us that the Bank was deliberately designed to start with “those less controversial things, less equity driven” as …
Government response. The Bank has published its first strategic plan in June 2022, which sets out the Bank’s investment strategy. The Bank has already made 12 deals worth £1.16 billion across a range of priority sectors and have further deals in the …
HM Treasury