UK Infrastructure Bank Bill [Lords]

James Cartlidge Excerpts

2nd reading
Tuesday 1st November 2022 Commons Chamber

[The Exchequer Secretary to the Treasury (James Cartlidge)]

I begin by saying how grateful I am to all the Members who have contributed today; it has perhaps been more a case of quality than quantity. When we talk about the funding of this important bank, it is a case of both quality and quantity. We are talking about billions of pounds of investment for two crucial priorities for this Government and this country: levelling up and net zero.

Let us be clear that that work is already under way, with the bank delivering very important projects to date, as we can see when we consider the following: £107 million for the redevelopment of the former Redcar steelworks site on Teesside, which will drive forward the offshore wind sector and create 800 jobs; 4,000 more jobs unlocked by investment in green transport in Birmingham, connecting its city centre, Solihull and Birmingham airport through a zero emissions corridor; spades already in the ground to ramp up solar and meet our energy needs, with plants opening in Newport, south Wales, and Strensham, Worcestershire; and fast, affordable and reliable broadband to 8 million homes across 285 towns and cities in England and Wales by 2025, with a further investment to deliver ultrafast broadband to businesses and households in rural Northern Ireland.

Let me turn to the comments made by the Opposition spokespeople, as I am grateful for their support. I could not tell at times whether it was enthusiastic or slightly reluctant, but either way I am very grateful that we have a consensus in this Chamber on the importance of delivering this Bill, including from the SNP, whose support I am also grateful for.

Both the hon. Members for Ealing North (James Murray) and for Sefton Central (Bill Esterson) spoke about our record. Let us be clear about something: between 1990 and 2019 our carbon dioxide emissions in this country fell by a staggering 44%—they fell by almost half. I do not think there is any other industrialised economy that can compare on that. In the same period, our economy grew by three quarters, because we can have growth and cut emissions—we are proving that. That is why the bank has the dual mission to deliver on net zero and on investing in local and regional economic growth. [Interruption.] The hon. Member for Sefton Central chunters from a sedentary position. He was critical of our efforts on offshore wind and renewables, but we have the largest capacity of offshore wind in Europe. I am proud, as the MP for South Suffolk, of the extraordinary contribution of offshore wind off East Anglia and what it is doing to drive forward this country’s journey to net zero. The difference here is that we are doing it in the real world. Let me put that in context. Renewables in 2010 made up just 7% of our total energy, whereas this year the figure was up to 43%. We have seen extraordinary growth and we should all be very proud of that.

Both the Labour spokespeople asked the specific question on worker representatives. I understand where they are coming from, but we do not believe this amendment would be necessary. We have asked the bank to abide by the corporate governance code to the extent appropriate to the UK Infrastructure Bank, which specifies that the board should engage with the workforce through either a director appointed from the workforce, a former workforce advisory panel or a designated non-executive director. The bank has appointed a NED, Marianne Økland, who will take on this role. I hope that that answers that question.

The hon. Member for Sefton Central asked about our commitment to levelling up, so let me be clear. The levelling-up fund has already awarded £1.7 billion, and there is £2.6 billion from the shared prosperity fund, £3.2 billion from the towns fund and £5.7 billion from the city region sustainable transport settlements. I call that a commitment to levelling up, and we on the Government Benches are proud to be pushing that forward.

My hon. Friend the Member for North East Bedfordshire (Richard Fuller) speaks on these matters with great expertise; not only was he a Treasury Minister, but we must not forget that in the real world he was a successful businessman in his own right. He posed some very good questions, including one about the target rate of return. I can be clear that in the framework document for the bank, a target return of 2.5% to 4% by the end of 2025-26 is set out. We think there would be problems were we to state that target in law—one can imagine the potential downside—but to ensure transparency there will be a review of the bank’s operations within seven years. The review will look specifically at additionality—the degree to which investment is additional—because although we support the bank, we all have to defend the interests of taxpayers. We look to them as I look to you as I speak, Mr Deputy Speaker.

My hon. Friend also asked about green finance leadership. I can confirm that according to the latest global green finance index compiled by Z/Yen, London is once again classed as the greenest finance centre in the world. Rumour has it that a certain Treasury Minister might well be in Egypt next week promoting that very point.

On the power of direction in clause 4, no one should get too excited; we are not talking about a return to the good old days of socialism. I confirm that the bank is operationally independent. The Treasury can already issue directions to the bank under companies law and as set out in the bank’s framework document. Clause 4 simply puts the existing power on a statutory footing for transparency and accountability.

I am grateful to the right hon. Member for Dundee East (Stewart Hosie) for his welcome and for his discourse on rolling stock. As the son of a father who was into model railways, train sets and all the rest of it, it brought back some memories. He and the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) both spoke about devolved issues. All I can say is that we at the Treasury have had very positive discussions with the devolved Administrations, and the bank itself has of course spoken to both the Development Bank of Wales and the Scottish National Investment Bank. I am sure we will have further discussions and a very positive relationship. On specific investment, I say to the hon. Member for Carmarthen East and Dinefwr that the bank is operationally independent, but I am sure it will take into account the points he put on the record today.

The hon. Member for Richmond Park (Sarah Olney) made a very good point when she spoke about the sheer scale of the investment needed to deliver net zero. We in His Majesty’s Treasury are well aware of that. That is why it is so important that the funding capacity from this bank will be £22 billion, crowding in a further £18 billion. That is a huge step forward, but we know there is more to do, which is why it is important that the Bill is before the House. It is the next step in a necessary but exciting journey of transformation of infrastructure projects in our country. It will establish the bank in the market and ensure its longevity in the future.

As my right hon. Friend the Chief Secretary to the Treasury said in his opening speech, we have designed the bank to be a long-lasting institution to deliver long-term priorities and projects on which we all depend and, above all, net zero and levelling up. For that reason, I commend the Bill to the House.

Question put and agreed to.

Bill accordingly read a Second time.

Uk Infrastructure Bank Bill [Lords]: Programme

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the UK Infrastructure Bank Bill [Lords]:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 22 November 2022.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Consideration and Third Reading

(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which proceedings on Consideration are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and up to and including Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.— (Jo Churchill.)

Question agreed to.

UK Infrastructure Bank Bill [Lords]: Money

King’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the UK Infrastructure Bank Bill [Lords], it is expedient to authorise—

(1) the payment out of money provided by Parliament of:

(a) any expenditure incurred under or by virtue of the Act by the Treasury; and

(b) any increase attributable to the Act in the sums payable under or by virtue of any other Act out of money so provided; and

(2) the payment out of the National Loans Fund of any sums payable out of the Fund by virtue of the Act.—(Victoria Atkins.)

Question agreed to.