European Investment Bank

Debate between Lord Livermore and Lord Balfe

Wednesday 24th July 2024 Lords Chamber

[Lord Balfe]

To ask His Majesty’s Government what plans they have to seek a closer relationship with the European Investment Bank to encourage investment in the United Kingdom.

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

My Lords, the Government have set out plans to significantly increase investment in the UK economy, including through a new national wealth fund and far-reaching reforms to the planning system. The Government have not set out any specific plans in relation to the European Investment Bank.

[Lord Balfe (Con)]

I thank the Minister for his reply. When we left the European Union, we left the agencies in a particularly violent way. We did not really deal with them at all, but there is nothing in the EIB statutes that precludes it lending to non-EU countries such as the United Kingdom. Will the Government consider opening negotiations with the EIB to get a closer relationship, one that is based not on cherry picking but on the mutual concerns on both sides to get a better spread of investment in the United Kingdom and Europe?

[Lord Livermore (Lab)]

I agree with the substantive points that the noble Lord is making. We need to reset our relationship with the European Union. The Government are committed to doing this in order to strengthen ties, reinforce our commitment to security and tackle barriers to trade. We also need, as he says, to increase investment in our economy, so we have set out significant steps to unlock billions of pounds in private sector investment in the industries of the future through a national wealth fund, planning reform, a pensions review and a modern industrial strategy.

The noble Lord asked specifically about a third-party relationship with the European Investment Bank. Although it is possible to agree such an arrangement, it is unlikely that such an arrangement would provide anything like as much investment into the UK as membership of the EIB did.