PARLIAMENTARY DEBATE
UK Infrastructure Bank Bill [Lords] - 1 February 2023 (Commons/Commons Chamber)

I beg to move, That the clause be read a Second time.

With this it will be convenient to discuss the following:

New clause 2—Businesses and bodies the Bank invests in—

“(1) The Bank must publish an annual report setting out—

(a) the geographical spread of businesses and bodies it invests in, and

(b) the ownership of the businesses and bodies it invests in.

(2) The Bank must prepare and publish a ‘Good Jobs’ plan for all businesses and bodies it invests in, which requires the business or body to improve productivity, pay, jobs and living standards.”

This new clause would ensure that the Bank considers the location and ownership of the businesses and bodies it invests in and only invests in businesses and bodies who create “Good Jobs” plans to improve productivity, pay, jobs and living standards.

Amendment 5, in clause 2, page 1, line 14, at end insert—

“(i) to reduce economic inequalities within and between regions of the United Kingdom, and

(ii) to improve productivity, pay, jobs and living standards.

(c) to support supply chain resilience and the United Kingdom’s industrial strategy.”

This amendment would ensure that the Bank’s objective to support regional and local economic growth includes reducing economic inequalities within and between regions and improving productivity, pay, jobs, and living standards. It would also create a third objective for the Bank to support supply chain resilience and the UK’s industrial strategy.

Amendment 3, page 1, line 14, at end insert, “, and

(c) to improve water quality in the UK.”

This amendment would add improving water quality in the UK to the Bank’s objectives.

Amendment 4, page 1, line 22, at end insert—

“(4A) The Bank may only provide any of the support listed in subsection (4) to water companies if they have produced a costed, time limited plan demonstrating they are committed to preventing discharge.”

This amendment would require water companies to have a costed, time limited plan, demonstrating they are committed to preventing discharges before they can receive investment from the UKIB.

Amendment 2, page 2, line 9, leave out “consult” and insert—

“gain the express consent of”.

This amendment would require the Treasury to gain the express consent of the appropriate national authority before making provision in regulations under subsection (6).

Government amendment 1.

I rise to speak to new clause 1 and amendments 3 and 4.

I welcome the UK Infrastructure Bank Bill. We previously had a Green Investment Bank, founded by the Liberal Democrats in government. It was short-sighted for the Government to sell it off, especially as it made £144 million in profit for its Australian owners last year. Nevertheless, the Liberal Democrats are glad to see steps finally being taken to put the replacement UK Infrastructure Bank on a statutory footing.

Liberal Democrat new clause 1, in the name of my hon. Friend the Member for Richmond Park (Sarah Olney), seeks to ensure that this new UK Infrastructure Bank will remain in operation until the Government’s net zero and environmental commitments have been met.

I hope to see this new bank change investment in green infrastructure for the better, and this brings me to the two amendments—amendments 3 and 4—tabled in my name and those of Liberal Democrat colleagues. They seek to ensure that water companies set out costed, time-limited plans to deal with discharges before they can get funding through the bank. This is important because communities across the UK are currently being impacted by the actions of some negligent and wayward water companies. For years, we have seen these firms failing to invest in our vital infrastructure, but instead prioritising shareholder payouts and bumper bonuses for chief executive officers. It is shocking that this practice has been allowed to continue, and that the Government have resisted several attempts by the Liberal Democrats to clamp down on these sewage spills.

South West Water, which covers my patch in Devon, was awarded a one-star rating by the Environment Agency after having been found to have discharged sewage into rivers and lakes and on to our beaches over 42,000 times. This represents more than 350,000 hours of dumping, including at our prestigious blue flag beaches. Three of the 10 most affected beaches are in Devon. And what was the reaction at South West Water? It gave the chief executive a bonus of more than £1 million.

We on the Government Benches are aware of some of the comments—if I may say so, the somewhat misleading comments—in Liberal Democrat propaganda about this issue. The hon. Gentleman is obviously familiar with the situation at South West Water. Could he tell me what the cost is to South West Water of eliminating sewage overflow, and what are the implications for water bills for residents in the south-west, because that is what the literature from his party has been saying needs to be done?

The amendment that we are considering is about loans from the UK Infrastructure Bank. Whatever figure is required, the bank should not be permitted to release funds for the purpose of improving our sewerage system until there are plans by water companies for the system’s complete restoration.

I shall go through the amendments thoroughly and therefore I shall not detain the House long.

New clause 1 on the future of the UK Infrastructure Bank would have the effect of not permitting a sale of the bank until the duty set out in the Climate Change Act 2008 and the targets of the net zero commitment by 2050 had been met. That puts significant strictures on the maintenance of one bank and its objectives. I think the hon. Member for Tiverton and Honiton (Richard Foord) probably acknowledges that. He wants us to reflect on the sale of the green bank that was set up under the coalition Government. He talked about the profits that it made last year—about £180 million, perhaps a little less. However, I hope that he recognises a couple of things.

First, when the sale was made, the taxpayer benefited to the tune of £2.3 billion. That included a surplus of £186 million on taxpayer-invested funds and a commitment from the successful acquirer, Macquarie bank, to invest a further £3 billion. In the round, I do not think that was a bad transaction to make, because it enabled the attraction of more third-party capital—private capital—to try to achieve some of the objectives of that green bank under its new owners, and indeed that has taken place. Part of the balance with this Infrastructure Bank is: how are we going to evaluate its abilities and success in attracting third-party capital? If the hon. Member for Tiverton and Honiton reflects, he will see that his broad point in new clause 1 is a fair one, but I hope that he will not press it to a vote, because there are strong arguments on the other side and I would not support the points that he would be trying to make.

Again, I can understand some of the import of Labour’s new clause 2 and amendment 5. Labour is saying, “Here is an opportunity, with a major institution, with which we are going to look at and try to expand the infrastructure of the country, to make sure it has a full focus on the round of public interest in the things it is doing in our name.” That is a good intention but, as the hon. Member for Erith and Thamesmead (Abena Oppong-Asare) knows—we have talked about this in Committee—there are trade-offs to be made within those sets of objectives. As we add objectives to our institutions, those trade-offs make it more obscure to parliamentarians and to the public what the intention of the bank will be.

The objectives that the Government have set out in the Bill are already clear. They have the benefit of clarity, as we know what they are. They also cover a wide range of sectors and intentions, but with the underlying core objective of helping us to meet our green net zero and climate change objectives.

So if the Opposition wish us to support their amendments, where do they see the trade-offs being made between achieving those objectives and having the duties to reduce economic inequalities between regions, to improve productivity, pay, jobs and living standards, and to support supply chain resilience? Very few of us would disagree with some of those objectives—indeed, the Government are making great strides on some of them with their levelling-up initiatives—but we have to accept that as we give directions to some of these institutions with a broad range of objectives, we are, as democrats, losing some control over how public money can be directed; we are giving more discretion to the chief executives of those organisations to do as they see fit and not perhaps to do as we were laying down in statute. I encourage the Opposition to think again, and to consider that perhaps having the clarity and precision of objectives set out in the Bill is precisely what will enable this and future Parliaments to exercise control over the Infrastructure Bank.

The hon. Member for Tiverton and Honiton, who is speaking for all the Liberal Democrats today, as he has graced us with his presence in a number of the debates, talked a little about the water companies again. I hope that he will have been listening today and will be reflecting back to his party’s leadership that some of the publicity the Liberal Democrats have put out has been substantially misleading about the intentions and actions of this Government. Obviously, parties make political statements all the time, this way and that. However, particularly as he has now followed up with his proposal for how water company discharge can be managed, I hope he will see that it is a serious issue and therefore we should treat it seriously.

Amendment 4 seeks to provide that the support the bank can give can happen only after the water companies have produced a “costed, time limited plan”. I think the water companies would say, “We have already done that.” They have a plan, but not one that can be implemented just like that, in the flash of an eye—I mix my metaphors there. I am not sure that the amendment will have the intention that the hon. Member for Tiverton and Honiton wishes it to have, given what the water companies are already doing and what the Government are already doing with the monitoring and the objectives being set to reduce sewage discharge.

I will step over what the SNP spokesperson, the right hon. Member for Dundee East (Stewart Hosie), put forward, because I am sure he will be able to elucidate that point clearly—I believe we have heard it here a number of times, although we are never bored by the repetition. Finally, I thank the Minister for listening to the points that were made in Committee and coming forward with the Government’s amendment.

Finally, I thank the Minister for listening to the points that were made in Committee and coming forward with the Government’s amendment. I can see that the Opposition have not put down a further amendment on that matter, which is a sign that he has got that judgment call right.

I will speak to amendment 2 in my name, but before I address that fully, I will say a little about the other Opposition amendments and new clauses.

New clause 1 seeks to stop the bank being sold prior to net zero targets being met, which is sensible in principle, given the fate of the old green investment bank, as I described on Second Reading. New clause 2 seeks a report on the geographical spread of investments, which, again, is sensible given the Government’s recent track record on allocating money from the levelling-up fund. It still strikes me as rather absurd that the Prime Minister’s wealthy Richmond constituency should have been allocated £90 million, while the entire city of Glasgow received nothing in the second round of funding. I think we would all want to ensure that the UK Infrastructure Bank was far more equitable in its disbursements.

Amendment 5 seeks to reduce inequality and improve productivity. Amendments 3 and 4 seek to ensure that investment in water supply quality is permitted, but with conditions on the private companies receiving it. Each of these amendments and new clauses have merit, and we will be happy to support any if they are pressed to a Division.

Government amendment 1 seeks to reduce the gap between reporting from a maximum of seven to a maximum of five years. That is progress of a sort, but five years is still too long. I would be looking for a commitment from the Dispatch Box that the Government anticipate the review and reporting frequency to be within the proposed five-year maximum.

Let me briefly reprise what I said about my own amendment on Second Reading, when I gave the UK Infrastructure Bank and the Bill a broad welcome. Taking it at face value, there was nothing to criticise in its objectives of helping to tackle climate change and supporting the efforts to meet the UK Government’s 2050 target. Nor was there anything to criticise in the objective to support regional or local economic growth.

What I pointed out, though, is that—the Minister on Second Reading alluded to this in his speech—the delivery of support to facilitate local and regional growth in Scotland is provided by the Scottish Government, local government and other agencies, and that the green targets in Scotland, such as the earlier net zero target, are also set independently. It is therefore important that the UK Infrastructure Bank actually supports the devolved Governments’ objectives and does not, even inadvertently, end up working against them. That remains important because we have our own infrastructure investment plan, our own global capital investment plan and our own national strategy for economic transformation that provides the framework for the Scottish Government’s policy priorities.

In giving the Bill a broad welcome, I also made the point that while there is clearly an overlap between the strategic objectives of the UK Infrastructure Bank and the Scottish National Investment Bank—the wording of the aims of both the UKIB and the Scottish National Investment Bank are broadly similar—it is vital to ensure that both banks meet their goals and deliver the maximum impact for the people of Scotland. In line with the objectives set in the Bill, it is essential that the two banks are able to work together to identify and support appropriate infrastructure projects in Scotland. It is also vital that Scottish interests are appropriately represented and that there is an awareness of the Scottish economic context and the Scottish Government’s policy goals.

To ensure that there is alignment between both banks’ aims, I have argued that there should be an administrative mechanism, such as a memorandum of understanding, between the UKIB and the Scottish National Investment Bank to ensure that policy alignment is maintained. I fear that unless we have a firm mechanism, the UKIB’s aims might also be undermined, and there will ultimately be a risk that it will not deliver fully on its objectives. However, the Bill merely suggests in line 9 of clause 2(7) that the Treasury must only

“consult the appropriate national authority before making provision in regulations…that would be within the legislative competence of”

one of the devolved Administrations.

I was going to make my points through interventions, but as so few Members want to speak, I thought I would take the opportunity to make a speech. I will speak very briefly to new clause 2 and amendment 5—which stand in the name of the official Opposition, and deal with the need to ensure that the geographical investment is spread across the UK, which is of course is something we all support—and amendment 2, tabled by the right hon. Member for Dundee East (Stewart Hosie), which deals with the constitutional challenges created by these post-Brexit agencies and frameworks. The right hon. Gentleman made his points very eloquently, and I fully support what he said.

In my speech on Second Reading, I highlighted how I thought some of the challenges outlined in these amendments could be dealt with. In my view, that is primarily by ensuring that post-Brexit frameworks and agencies such as the UK Infrastructure Bank have a formal role for the Welsh, Scottish and Northern Ireland Governments within their constitutions and their administration. When I made that speech on Second Reading, the Welsh Government were withholding consent; they have now decided to offer consent because the UK Government have given an element of a concession by outlining that a director of the UK Infrastructure Bank will be responsible for liaising with the Welsh Government—I suppose the same will be true for the Scottish and Northern Irish Governments. That does not go quite as far as I was calling for on Second Reading, when I made the case for the Welsh, Scottish and Northern Irish Governments to be able to appoint their own individual directors.

That concession is a step forward, which I of course welcome. However, the Minister might be aware that the Climate Change, Environment, and Infrastructure Committee in the Senedd, which was responsible for scrutinising the legislative consent mechanism, advised the Welsh Government against awarding legislative consent because of that lack of a formal role—indeed, there was no role whatsoever for the Senedd. I would be grateful if the Minister reflected on my Second Reading speech, where I made the case that it would be very helpful if the UK Infrastructure Bank had to be scrutinised by the relevant Senedd committee, as well as by the Welsh Government.

In conclusion, this really comes down to the Labour party. We expect that it will form the next UK Government; how is it going to Brexit retrofit the UK constitution in light of all these frameworks and agencies that have had to be created since the Brexit referendum, and since we left the European Union and the single market in particular? In Labour’s response to this debate, I very much hope to hear that it is looking at a radical realignment of the British state when it forms the next UK Government, giving the Administrations in Wales, Scotland and Northern Ireland, where appropriate, a formal role in these post-Brexit agencies and frameworks.

I commend the hon. Lady for holding the Government to account on this particular issue of the review period. This is where we are setting the bank free to go on its mission. As she and I agree—I think we agree—the initial few years are really very important. I notice that the Minister has restricted to five years subsequent assessments, as both the hon. Lady and I thought would be wise, but there is still that initial seven years. She did not table an amendment on that, so I wondered what the Opposition’s thinking was on that initial period?

Does my hon. Friend agree that by failing to commit to Northern Powerhouse Rail, the Government have failed on their levelling-up promises to the north? Would she, along with me and other Members who have expressed opinions earlier in the debate, suggest that the Minister needs to offer the House some assurances that the UK Infrastructure Bank will distribute its benefit to every part of the country, with the geographical spread she just mentioned?

The hon. Lady is being generous in giving way, and I am grateful to her. I want to probe her thoughts a little further on amendment 5. The Bill, as I have said, has the benefit of being quite precise in its current objectives. As parliamentarians, we know that when we take something from statute and leave it to regulators, the House’s ability to hold them to account in the public interest is somewhat weakened. Does she accept that additional objectives would give an Executive a lot more discretion to say, “I didn’t achieve that because I was focusing on this objective”? We have created some primary objectives about climate change and so on. Adding others would leave us somehow disempowered, because those Executives could move and shake around where they said their priorities were. As I said earlier, I am concerned about the balance between laudable objectives and ensuring that, when we have put the Bill into statute, we parliamentarians retain the ability to control what is actually happening on the ground in one, two, three, four and five years from now.

Does the hon. Lady not agree, having been in the Chamber earlier today, that the Government are already monitoring storm overflows across the country? One of the reasons why we are aware of the size of the problem that we are trying to tackle is because we have increased the monitoring from only 6% a few years ago to nearly 100% now.

It is always a pleasure to follow the hon. Member for Erith and Thamesmead (Abena Oppong-Asare). I thank all hon. Members who have tabled amendments and contributed to today’s debate, as well as those who made valued contributions in Committee. Notwithstanding a certain number of amendments, I feel that generally there is good consensus across the House about the core purpose and objective of an important institution.

If we are fully to meet our responsibilities to spread opportunity to all parts of the United Kingdom and support the all-important transition to the clean energy economy, it is right that we take bold action now with institutions such as the UK Infrastructure Bank. We have therefore introduced the Bill to make explicit—with a legislative lock, if you like—the scope of the bank’s objectives

“to support regional and local economic growth”

and

“to help tackle climate change”.

Enshrining the bank in legislation will help to establish it as a long-lasting institution. That is important to colleagues across the House, as we have heard, who agree that it is a welcome initiative. I am glad that there has been general consensus today about the importance of the Bill.

I turn to Government amendment 1, which stands in my name. In Committee, I committed to looking again at the frequency of statutory reviews into the UK Infrastructure Bank and undertook potentially to propose a different frequency at a later stage of the Bill’s passage. It would be a gross mischaracterisation to call the amendment a U-turn; it is simply an example of a listening Minister in a listening Government trying to do what is best to get the institution on the right footing. I thank hon. Members who brought the matter to my attention and shared their views, particularly my predecessor, my hon. Friend the Member for North East Bedfordshire (Richard Fuller), who raised the point in Committee.

It is, I hope, a sign of strength that I considered afresh what was appropriate for the first review period. However, given the pre-existing reviews to which the Cabinet Office and HM Treasury have already committed, and the need to allow a nascent institution time to embed itself, I remain of the view—having taken the question away and looked at it again—that it is right for the first review period to be seven years. However, I recognise the strength of the arguments for, the appropriateness of and the desire for a shorter period between every subsequent review to ensure that this House applies the necessary accountability. My amendment 1 would therefore reduce the interval between each regular review after the first.

I hope the hon. Lady would never dream of trying to score cheap political points, as distinct from our good-natured and collaborative discussions in Committee. Rather than setting a new timeframe there and then, we looked at precedent in a quest for the optimal timeframe. I undertook to come back on Report and share a proposal with the House, precisely as I am doing today. Having listened and having made that determination, I can feel the warm radiation of support from the Opposition. I hope to see that good will extending to supporting the rest of the Bill without further amendment.

As it gets warm and huggy between the two Front Benchers, I would like to remind the Minister that I also tabled an amendment in Committee. I hope that he is feeling warm and huggy towards Government Back Benchers as well. He seems huggy, though I am not sure it is politically correct to say that any more. I want to emphasise that the Minister has been listening, which is why he has come back with the amendment. That is the right thing for him to do.

The serious part of my point is how the institutional culture of the bank is set. The Minister will know from his own experience that the first few years are very important. He says that the first review period will be seven years, and I understand that, but can he share with the House some of his thinking about how that responsibility will be balanced? I think Members on both sides of the House are concerned that we set the institutions and regulators out there a task, but then we do not have the time, the information or the control to hold them to the original principles that we have set. Does the Minister broadly agree with that? Is he comfortable with the way the legislation will now be framed?

Let me assure my hon. Friend and the whole House that this institution will not lack the proper scrutiny. In that initial set-up period it will be reviewed by both the Cabinet Office and His Majesty’s Treasury. It will not lack scrutiny. It has an obligation to report annually. On some of the amendments we have discussed today, I have already procured a commitment from the bank to put more information into the public domain about its investments and their location, which Opposition Members have rightly pressed us for.

Although the bank is yet to reach its full complement of staffing and run rate of operations, it has already benefited from a serious review by the Public Accounts Committee of this House. I think it would be worth trying to correct some misapprehensions, but I do not for one moment take away the importance of regular scrutiny. We are talking about public money, and it is of the utmost importance that we engender trust as well as good value for public money.

That Public Accounts Committee report is a good and important piece of work. I absolutely commend the work of the Committee, which does a sterling job to protect the interests of taxpayers. We should always remember our duty of care when we are spending other people’s money. It is a good piece of work, and I am grateful for it. We will respond to it in the usual way through the Treasury minute process to get that on the record.

However, I want to address one or two of the points raised. The report raised concerns about governance, but this is an institution that has benefited from strong financial governance from the get-go. All deals done to date have been reviewed by the full UK Infrastructure Bank board before being approved. Because of that, early deals were also approved by HM Treasury Ministers to ensure that we protected taxpayers’ money.

I am proud, as we all should be, of the bank’s work as it continues to engage with the market and across Government, building on its first 18 months in which it has done 10 deals worth more than £1 billion of additive, incremental investment across all parts of the United Kingdom.

My hon. Friend has just used the magic word “additive”. Would he care to explain further, in the context of these new clauses and amendments, that the issue of additive capital is a crucial part of the bank’s responsibility? This is not just about protecting taxpayers’ money, but about attracting third-party private capital. One of the points about the proposal to spread the objectives is that it becomes harder to attract that capital when the mission of the institution is more diffuse. The more focus it has, and the more focus my hon. Friend has, the more likely we are to achieve the objective of additive capital that he has outlined so clearly.

My hon. Friend is, once again, absolutely right. The principle of being additive is baked into the core charters and constitutions, as well as the steer that my colleagues and I will give.

New clause 1 would insert a provision to prevent the sale of the bank. I understand the concern that has been expressed by Members in the past, but I can reassure them that the bank is intended to be a long-lasting institution. I have detected a strong degree of consensus about the importance of this, both in Committee and here in the Chamber, just as our commitment to net zero is long-lasting and a subject of consensus. We intend the bank to be permanent; it is an essential part of the Government’s infrastructure strategy. Moreover, the new clause is simply not necessary. In the event that any future Government considered a sale of the bank—and that is not my expectation—it would require primary legislation at the time. The new clause cannot bind the House on a future occasion, and in any event it is not necessary, so I ask for it not to be pressed to a vote.

The hon. Member for Erith and Thamesmead has tabled a new clause and an amendment. New clause 2 would require the bank to publish an annual report addressing the geographical spread and ownership of bodies in which the bank invests. That is, of course, its core purpose, and I therefore do not think we need the new clause. We debated this proposal in Committee and, for the reasons that we set out then, we do not propose to accept it now.

The new clause is simply unnecessary, because the bank will already be reporting on its investments: it will publish a summary of them in its annual report and accounts. It captures data in all its deal assessments, and will be happy to make them publicly available. I have received a letter from the bank confirming that it will make publicly available the names of developers and/or sponsors of the projects it supports. It will also provide the geographical location of these projects. I feel pressed by colleagues on this matter. I have procured more information, as the hon. Lady has requested and, again, I ask for this new clause not to be pressed to a vote.

As for jobs, it is actions, not lines of statute, that count. We do not need to deliver an amendment to deliver good jobs; just ask the employees involved in the NextEnergy, Gigaclear and Fibrus investments which the bank has already supported. Every job is a good job. The bank is committed to pursuing the highest environmental, social, resilience and governance policy standards, and we do not feel that there is any added value in simply adding extra lines of statute or red tape for the sake of it, as the hon. Lady proposes. It is actions, not words, on which we are focused.

Amendment 5 asks for the bank’s objective to include reducing regional inequality and improving pay, productivity and living standards, as well as supporting supply chain resilience. However, those are already implicit in the bank’s current objective. That is the very purpose of setting up a UK infrastructure bank—the clue is in the name—and we now have a track record to show what the bank is doing to support regional and local growth.

Will my hon. Friend give way?

I will give way one final time, but my hon. Friend will have to make it count.

I am not so sure about that, but I know that my hon. Friend has a lot of reading to get through. As he obviously knows, part of what is inherent in the net zero objectives is the fact that there will be an increase in supply chain resilience.

My hon. Friend did indeed make his intervention count, because that is a very pertinent point. Of course, the whole purpose of the bank is infrastructure and capability building, and the commitment to regions is at its heart. Regional and local growth are among its core objectives. The more diverse infrastructure we have in all parts of this great United Kingdom, the more we are naturally adding resilience and achieving our objective. Indeed, the strategic steer set by the then Chancellor in March last year makes it clear that the bank must focus on geographic inequalities by reference to the levelling-up White Paper, which includes a comprehensive set of levelling-up objectives and measures and supports the Government’s strategic approach to levelling up. We would rather do that on a portfolio basis than investment by investment, as proposed by the hon. Member for Erith and Thamesmead.

Amendments 3 and 4, tabled by the hon. Member for Tiverton and Honiton (Richard Foord), focus on the important issue of water quality. This is an area where the Government do not need any lessons. We are taking the lead in this matter, and are taking the action that the hon. Gentleman’s party and its leader failed to take in coalition. Sometimes one detects the fervour of a convert, or even the working-out of some past guilt about their failure to take action on water.

It is obviously delightful to have another Devon MP who cares passionately about the environment, as did his predecessor. I cannot help but wonder whether, if the Liberal Democrats were serious about this, the Secretary of State for Energy and Climate Change from 2012 to 2015 might have implemented some of these things. Does my hon. Friend the Minister agree that there seems to be a trend of creating opportunities for dodgy graphics and social media content, rather than making serious changes to legislation?

My hon. Friend makes an important point. It ill behoves a party that aspires to be taken seriously as a force in British politics to be all about clickbait, misleading graphics and half-truths, rather than about, for example, the data, which show that monitoring has increased from just 5% in 2016—a level at which it would be wrong for anyone to characterise themselves as having their arms around this long-standing issue—to more than 90% today. I understand from my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs that it will be 100% by the end of this year. We are the party that is taking action. We are the party that is finding the data, exposing the conduct of the water companies and putting record investment into the sector to solve this long-standing problem. We are the party that provides the solution.

The hon. Member for Tiverton and Honiton needs to consider whether he wants to be part of the problem or, as we all are, part of the solution. One of his amendments is entirely superfluous, as such a measure is already underwritten by the objectives in the world-leading Environment Act 2021. Only yesterday, we announced ambitious interim targets to deliver those objectives in our environmental improvement plan. I believe that the hon. Gentleman was in the Chamber for the statement that preceded this debate. For that reason, we will accept his amendment, because it sits within the actions that we are taking and the commitments that we have made.

Finally, the amendment tabled by the right hon. Member for Dundee East (Stewart Hosie) would require explicit consent from the devolved Administration before using powers under clause 2(6) that touch on devolved competence. However, I was pleased when his colleague, John Swinney, the acting Finance Secretary, wrote to me indicating that he was happy with the content of the Bill, and would recommend that the Bill receive a legislative consent motion. Last week, I was even more pleased—imagine my delight—when the Scottish Parliament gave the Bill an LCM. The right hon. Member for Dundee East will see that not just the Government but his colleagues suggest that his amendment is not required by the Government in Holyrood. As a result, I very much hope that he will not seek to push it to a vote.

This is an incredibly important milestone and moment in establishing a new national institution that will deliver real social purpose and make an enormous difference to the lives of our fellow citizens across the United Kingdom. Establishing it today in statute will give the market greater certainty and confidence, and encourage significant private sector investment in all of the bank’s priority sectors. By partnering with the private sector—by mobilising the life force of private capital, the ferocious, problem-solving power of business—in areas that might otherwise struggle to get the investment they require, we will help speed up the transition to net zero and level up the UK. With the exception of amendment 4, which I have indicated the Government will not oppose, I hope Members understand the reasoning—even if they do not agree—that I have set out as to why we cannot accept the amendments and new clauses and that they respect the time of the House and agree not to press them to a vote.

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 2

Businesses and bodies the Bank invests in

“(1) The Bank must publish an annual report setting out—

(a) the geographical spread of businesses and bodies it invests in, and

(b) the ownership of the businesses and bodies it invests in.

(2) The Bank must prepare and publish a ‘Good Jobs’ plan for all businesses and bodies it invests in, which requires the business or body to improve productivity, pay, jobs and living standards.” .—(Abena Oppong-Asare.)

This new clause would ensure that the Bank considers the location and ownership of the businesses and bodies it invests in and only invests in businesses and bodies who create “Good Jobs” plans to improve productivity, pay, jobs and living standards

Brought up, and read the First time.

Question put, That the clause be read a Second time:—

I beg to move, That the Bill be now read a Third time.

The Bill will place the UK Infrastructure Bank on a statutory footing and enshrine key aspects of it in legislation, ensuring that the bank’s purpose is clear and enduring. It will enable the bank to lend directly to local authorities and the Northern Ireland Executive, and His Majesty’s Treasury will be able to put the bank into funds. The Bill also guarantees a high standard of transparency and accountability to this House.

The Bill will now enable the bank to be fully operational, ensuring that its two strategic objectives are put into statute. It marks the next chapter for the UK Infrastructure Bank as it continues to develop operationally. Since the summer of 2021, when the UKIB became operational, 10 deals worth close to £1.1 billion have been completed, including providing financing for a new £500 million fund that could double the amount of subsidy-free solar power in the UK.

The UKIB has a transformative potential that I know is recognised and supported on both sides of the House. I would like to thank my immediate predecessors, my right hon. Friend the Member for Salisbury (John Glen) and my hon. Friend the Member for North East Bedfordshire (Richard Fuller). I also thank the hon. Member for Erith and Thamesmead (Abena Oppong-Asare) and her colleague the hon. Member for Hampstead and Kilburn (Tulip Siddiq) for their appropriate challenge, but also for the support they have given the Bill.

I would also like to put on record my sincere thanks and the best wishes of this House to the UKIB, including its chair, Chris Grigg, and its chief executive, John Flint, who have both done such great work in establishing the UKIB to date. Finally, as is customary, I would like thank my Bill team—Alex McBeath, Milly Rainford and Lorna Cosgrave—along with those in my private office at the Treasury, who have supported me ably throughout this process.

I am honoured to have played a part in taking this Bill—one that will deliver meaningful, material benefits for our country and our constituents—through the House of Commons, and I commend it to the House.

Question put and agreed to.

Bill accordingly read the Third time and passed, with amendments.