UK Infrastructure Bank Bill [HL]

1 The UK Infrastructure Bank

For the purposes of this Act, the UK Infrastructure Bank (“the Bank”) is the
company registered in England and Wales with the company registration
number 06816271.

2 Objectives and activities

(1)

The Bank must secure that its articles of association contain a statement of
its objects.

(2)

The statement must provide that the Bank’s objects are restricted to delivering
the Bank’s objectives through the exercise of the Bank’s activities.

(3)

The Bank’s objectives are—

(a)

to help tackle climate change, including by supporting efforts to meet
the target for 2050 set out in section 1 of the Climate Change Act 2008,
and

(b)

to support regional and local economic growth.

(4)

The Bank’s activities are—

(a)

providing financial assistance to projects wholly or mainly relating to
infrastructure,

(b)

providing loans to relevant public authorities for such projects,

(c)

acting as a centre of expertise and providing advisory and other
support services in relation to such projects, and

(d)

any other activities that are incidental or conducive to, or otherwise
connected with, anything in paragraphs (a) to (c) .

(5)

Infrastructure includes technologies and facilities relating to—

(a)

water, electricity, gas, telecommunications, sewerage or other services
(including the provision of heat),

(b)

railways (including rolling stock), roads or other forms of transport,
and

(c)

climate change (including the removal of greenhouse gases from the
atmosphere).

(6)

The Treasury may by regulations made by statutory instrument amend this
section so as to change—

(a)

the Bank’s activities, or

(b)

the meaning of infrastructure.

(7)

A statutory instrument containing regulations under subsection (6) may not
be made unless a draft of the instrument has been laid before and approved
by a resolution of each House of Parliament.

3 Strategic priorities and plans

(1)

The Treasury must prepare a statement of strategic priorities for the Bank.

(2)

The Treasury must comply with subsection (1) within the period of six months
beginning with the day on which this Act comes into force.

(3)

The Treasury may revise or replace the statement.

(4)

The Treasury must lay a copy of the statement, or of any revised or
replacement statement, before Parliament.

(5)

The Bank must secure that its articles of association provide for the Bank—

(a)

to publish and act in accordance with strategic plans which reflect the
Treasury’s statement, and

(b)

to update those plans whenever the Treasury revises or replaces its
statement.

4 Directions

(1)

The Treasury may give a specific or general direction to the Bank about how
it is to deliver its objectives.

(2)

The Bank must comply with a direction.

(3)

The Treasury must—

(a)

consult the Bank’s directors before giving a direction, and

(b)

publish a direction.

5 Financial assistance

(1)

The Treasury may provide financial assistance to the Bank for the purpose
of helping the Bank in the delivery of its objectives.

(2)

The Treasury may arrange for money to be paid out of the National Loans
Fund in order to enable loans to be made to the Bank, whether directly or
indirectly.

(3)

Where a loan from the National Loans Fund is made directly to the Bank,
the Treasury is to determine—

(a)

the rate of interest on the loan, and

(b)

other terms and conditions.

6 Annual accounts and reports

(1)

The Bank’s directors must, as soon as reasonably practicable after complying
with section 441 of the Companies Act 2006 in relation to a financial year,
deliver to the Treasury a copy of the accounts and reports which they are
required to deliver to the registrar for that financial year in accordance with
that section.

(2)

The Treasury must lay a copy of those accounts and reports before Parliament.

7 Directors: appointment and tenure

The Bank must secure that its articles of association provide that—

(a)

the Bank is to have at least five and no more than fourteen directors;

(b)

the chair of the Bank’s board, the Bank’s chief executive officer and
the non-executive directors are to be appointed by the Chancellor of
the Exchequer;

(c)

the period of a non-executive director’s appointment is not to exceed
four years, or such shorter period as may be specified in the terms on
which the director is appointed;

(d)

a person may be appointed as a non-executive director no more than
two times;

(e)

a person ceases to be a non-executive director as soon as—

(i)

the person ceases to be a director by virtue of any provision
of the Companies Act 2006 or is prohibited from being a
director by law,

(ii)

the person becomes bankrupt (in relation to England and Wales
and Northern Ireland) or the person’s estate has been
sequestrated (in relation to Scotland),

(iii)

a registered medical practitioner who is treating the person
gives a written opinion to the Bank stating that the person has
become physically or mentally incapable of acting as a director
and is likely to remain so for more than three months, or

(iv)

the person has resigned as non-executive director in accordance
with notification which the person has given to the Bank.

8 Duties of the Bank etc

Any duty imposed on the Bank or its directors by or under this Act is
enforceable on an application by the Treasury—

(a)

by injunction, or

(b)

in Scotland, by interdict or by an order for specific performance of a
statutory duty under section 45(b) of the Court of Session Act 1988.

9 Reviews of the Bank’s effectiveness and impact

(1)

The Treasury must carry out reviews of—

(a)

the effectiveness of the Bank in delivering its objectives, and

(b)

its impact in relation to climate change and regional and local economic
growth.

(2)

After each review, the Treasury must—

(a)

publish a report of the review, and

(b)

lay a copy of the report before Parliament.

(3)

The first report must be published within the period of 10 years beginning
with the day on which this Act comes into force.

(4)

Subsequent reports must be published at intervals of not more than 7 years.

10 Interpretation

In this Act—

“
activities”, in relation to the Bank, has the meaning given by section
2 (4) ;

“
financial assistance” includes assistance provided by way of loan,
guarantee, indemnity, participation in equity financing and any other
kind of financial assistance (actual or contingent);

“
infrastructure” has the meaning given by section 2 (5) ;

“
local authority”—

(a)

in relation to England and Wales and Scotland, has the same
meaning as in paragraph 1 of Schedule 4 to the National Loans
Act 1968;

(b)

in relation to Northern Ireland, means a district council;

“
objectives”, in relation to the Bank, has the meaning given by section
2 (3) ;

“
relevant public authorities” means local authorities and Northern Ireland
departments.

11 Extent, commencement and short title

(1)

This Act extends to England and Wales, Scotland and Northern Ireland.

(2)

This Act comes into force at the end of the period of two months beginning
with the day on which it is passed.

(3)

This Act may be cited as the UK Infrastructure Bank Act 2022.