Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Acknowledged
We asked whether the Bank had mechanisms in place to manage pressures from competing government...
Conclusion
We asked whether the Bank had mechanisms in place to manage pressures from competing government departments looking for the Bank to invest in their policy areas. The Bank told us that it is operationally independent to make its own decisions, with an Accounting Officer and a Board as part of that independence.61 The Bank told us it has “very active discussions” with the Department for Business, Energy and Industrial Strategy because its portfolio overlaps with that of the Bank. The Bank also described working with DLUHC, the Department for Transport and the Department for Environment, Food and Rural Affairs (Defra). However, the Bank’s Accounting Officer told us he had not yet established personal connections with DLUHC or Defra, 16 months into the Bank’s operations.62 61 Q 92 62 Q 91 The Creation of the UK Infrastructure Bank 17
Government Response Summary
A lead point of contact within the Bank has been assigned for departments that are most critical to delivering our mission, each of whom has regular engagement with their department to understand the government’s strategic priorities and help originate and assess investment opportunities.
Government Response
Acknowledged
HM Government
Acknowledged
5.1 The government agrees with the Committee’s recommendation Target implementation date: March 2023 5.2 The Bank welcomes the Committee’s recommendation. Understanding the government’s strategic priorities for net zero and regional and economic growth is key to delivering the Bank’s mandate, so deepening engagement with government departments is an important priority. 5.3 A lead point of contact within the Bank has been assigned for departments that are most critical to delivering our mission, each of whom has regular engagement with their department to understand the government’s strategic priorities and help originate and assess investment opportunities. 5.4 This is supported by regular engagement between the Bank and senior government officials as needed. The Bank has met with senior officials in the Department for Environment Food and Rural Affairs, the Department for Levelling up Housing and Communities, the Department for Transport and Department for Business, Energy and Industry Strategy (BEIS). For example, prior to the restructuring of departments, UKIB had regular strategic engagement with the Permanent Secretary of BEIS and an agreed joint workplan on key sectors. In December, UKIB announced a new partnership with BEIS which enables local authorities applying to the government’s Green Heat Network Fund (GHNF) to access lending from the UKIB at preferential rates on the basis of the same application information submitted to the GHNF grant funding scheme. 5.5 The Bank is now in the process of engaging with the new departments as announced on 7 February 2023, to continue to build on the relationships that the Bank had established with the same teams in the predecessor departments. The Bank is also in the process of engaging further the Department for Business and Trade and the Department for Levelling Up, Housing and Communities.