Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will publish the procedures by which the UK Infrastructure Bank will be allocated the £12 billion of equity and debt capital.

The Government published further details on the design of the UK Infrastructure Bank alongside Budget in March. This can be found at https://www.gov.uk/government/publications/policy-design-of-the-uk-infrastructure-bank.

In total, the Bank will have £22 billion of financial capacity to deliver on its objectives:

• £5 billion will be made available as equity from HM Treasury
• the Bank will also be able to borrow up to £7 billion from a government credit facility administered by the Debt Management Office (DMO) and also private markets.
• of its £12 billion of equity and debt capital, £4 billion will be allocated to local authority lending, providing a significant commitment to this wing of its operations
• the Bank will have initial authority to issue up to £10 billion of guarantees, as the Bank takes on responsibility for the UK Guarantee Scheme, with more available subject to review

The Bank will have significant flexibility as to when it draws down its equity capital and be able to borrow up to £1.5bn a year. The Government will publish a framework document ahead of the Bank’s launch, setting out further details on governance and the relationship with government.