InfrastructureMay 10 2022

Queen's Speech 2022: UK infrastructure bank aiming towards net zero

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Queen's Speech 2022: UK infrastructure bank aiming towards net zero
Josh Sorenson/Pexels

The government has introduced a bill to support the establishment of a British state-owned investment bank to guide the country's infrastructure towards net zero carbon emissions.

The UK infrastructure bank bill was introduced in the Queen’s Speech this morning (May 10).

The bank will have a capacity of £22bn to help grow the economy to address the cost of living, and support the transition to net zero by 2050.

It will provide a boost to infrastructure investment by "cementing the bank's leading role in the market", the speech said.

It will do this through debt, equity and guarantees and has already undertaken a £107mn loan to support Tees Valley Combined Authority in the redevelopment of the South Bank Quay in the Teesworks Freeport area.

The bank will focus on investing in under-invested areas where it can take a "lead" in the market, according to the Queen’s Speech, delivered by Prince Charles.

The UK Infrastructure Bank was announced in March last year and aims to draw private sector finance into local authorities, as well as energy, water, waste, transport and digital projects. 

When the bank was launched, Chancellor of the Exchequer Rishi Sunak said although the UK’s use of private finance was a “strength”, “the private sector cannot always shoulder the burden alone.” 

“Working with the private sector and local government, [the new bank] will lead a shared mission to accelerate investment in the country’s infrastructure,” he said.

sally.hickey@ft.com