Source · National Audit Office

The Creation of the UK Infrastructure Bank

Published: 1 Jul 2022 Recommendations: 7 Type: Value for Money NAO confirmed: 6 Department: HM Treasury

This report looks at the set-up of the UK infrastructure Bank, including HM Treasury’s planning before launch.

Dept: HM Treasury Topics: Banks and financial servicesBusiness and industryCommercial and financial managementCorporate financeInfrastructure finance nao.org.uk →

Recommendations

7 items

6 accepted 1 rejected 4 implemented 2 in progress

Rec	Recommendation	Addressee	Acceptance	Implementation
1	a. HM Treasury should confirm by the end of summer 2022 how it intends to conduct a post-implementation review and include in that work an assessment of how the Bank?s initial structures are working in practice and whether they are appropriate to the Bank?s ongoing role. Ref Page 12, Paragraph 21, point a · Implemented Not complete	HM Treasury; UK Infrastructure Bank	Rejected	Not relevant ✓ NAO
2	The Bank should, learning from the Green Investment Bank and British Business Bank interventions, further develop its understanding of where infrastructure needs are greatest so that it routinely informs investment decisions and prioritises them. It should bring this understanding of needs together with a clear view of what it can do best, based on its skills and information about its performance. Ref Page 12, Paragraph 21, point b · Implemented Q2 2023-24	HM Treasury; UK Infrastructure Bank	Accepted	Implemented ✓ NAO
3	In developing its performance measurement framework, the Bank should ensure it has metrics and benchmarks allowing it to assess in detail whether it is balancing all of its objectives and delivering on the government?s ambition for it. HM Treasury and the Bank need to develop a more robust plan for evaluating the Bank?s activities over the longer term, to help it measure additionality and assess which of its tools are most cost-effective. Ref Page 12, Paragraph 21, point c · Implemented Q2 2023-24	HM Treasury; UK Infrastructure Bank	Accepted	Implemented ✓ NAO
4	e. The Bank should develop clear aims for its advisory function and develop measures to help it assess performance over time. It should develop a formal and strategic approach to engagement, including communicating to market participants a clear picture of what the Bank is best placed to do and, correspondingly, what it will not do Ref Page 12, Paragraph 21, point e · Implemented Q3 2024-25	National Wealth Fund Ltd	Accepted	In progress
5	d. The Bank should benchmark its costs for individual support functions, such as HR, and the organisation as a whole, with suitable comparators. It should work towards bringing together performance and financial information to help it assess its own cost-effectiveness. Ref Page 12, Paragraph 21, point d · Implemented Q4 2024-25	National Wealth Fund Ltd	Accepted	In progress ✓ NAO
6	The Bank should work with central government and other public bodies to structure its engagement, including through formal arrangements where appropriate, to maximise opportunities for co-operation and co-ordination where beneficial and to manage areas of potential duplication. Ref Page 13, Paragraph 21, point f · Implemented Q4 2022-23	HM Treasury; UK Infrastructure Bank	Accepted	Implemented ✓ NAO
7	The Bank should develop approaches to assessing whether its engagement with local authorities, other stakeholders and the market is working as intended. Ref Page 13, Paragraph 21, point g · Implemented Q2 2023-24	HM Treasury; UK Infrastructure Bank	Accepted	Implemented ✓ NAO

Public Accounts Committee follow-up

1 report

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.

25 Jan 2023 Public Accounts C… Thirty-Fourth Report - The Creation of the UK Infrastructure Bank — 17 recommendations · parliament.uk