Recommendation 7

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 the authority to sign-off all deals, which it exercised to approve several early low risk Bank deals. Six months after launch, once the Bank recruited the staff it needed, authority was largely transferred to the Bank except for deals above a certain size and any considered novel, contentious, and repercussive, which still require Treasury approval.18 The Bank has now improved its corporate governance arrangements, with most executive positions now filled on a permanent basis and the non-executive directors are in post and independent.19 The Bank told us that the decision to set-up at pace has proved to be beneficial. It announced six deals in its first full year of operation and told us it has now announced a total of 10 deals, of around £1.1 billion in value.20 10 Qq 13, 32, 36 11 Q 2; C&AG’s Report para 5 para 12 Q 70 ; C&AG’s Report para 2.3 13 Qq 3–4 14 Q 70 15 Q 69 16 Q 67 17 Qq 36, 69 18 Qq 4, 67, 70 19 Q 67; C&AG’s Report paras 8 and 2.24 20 Q 31 The Creation of the UK Infrastructure Bank 11 Conditions for a long lasting and successful institution