With the announcement of the new fiscal year budget, came the news of the creation of a UK Infrastructure Bank. Many are arguing over whether the amount pledged to this bank will be enough, whilst comparing it to its equivalents in countries such as Germany. This bank is being put in place of the European Investment Bank (EIB) that the UK had access to, prior to Brexit. The UK used to receive £5bn per year from the EIB. The proposed funding for this new Bank was announced to be £12bn of public funding with another £10bn in government guarantees.
Many are also concerned that there are currently no mandates to ensure that all its investments will work to reduce greenhouse gas emissions in order to meet the UK’s net zero targets. This issue, many feel, needs to be addressed. Though a spokesperson for the Treasury has commented on this bank being able to better focus on government priorities such as the net zero target whilst boosting local growth, more so, than they could with the EIB.
Only time will tell if this new bank will increase infrastructure investments and help keep the UK on target for meeting eco-friendly goals.