Letters

Joint letter to UK Chancellor in response to March 2021 budget announcements on UK Infrastructure Bank

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Glass and green building with plants underneath
Glass and green building with plants underneath. Photo by Adrien Olichon on Unsplash.

The announcements made in the UK’s Budget 2021 included details about the new UK Infrastructure Bank which will have a mandate to invest in the UK’s net zero transition and in levelling up.

This institution can potentially play an essential role in delivering the patient capital needed to drive the UK’s green industrial revolution and unlock private capital at scale to create future-fit and resilient infrastructure across the whole of the UK. Further information will be released in Spring with the publication of the UK Infrastructure Bank’s framework. 

The Budget announcement incorporated many of the recommendations set out in a previous E3G letter and supporting design briefing, which identified the four key design objectives of key importance to creating a successful UK Infrastructure Bank: 

  • Governance 
  • Capitalisation 
  • Mission-driven mandate  
  • A future-fit definition of infrastructure. 

If the UK Infrastructure Bank is to be the transformational institution that is required to support the UK’s net zero transitionthe Spring framework must provide further detail on how exactly the UK Infrastructure Bank will incorporate net-zero into its investment strategy. It should also include a commitment from HMT to increased capitalisation over time, and outline how the UK Infrastructure Bank will work with a range of stakeholders to crowd in capital for the future-fit infrastructure needed to spur a green industrial revolution 

In a letter sent on 15th April, 18 leading figures representing business, investors, trade unions, academia, and civil society called on the UK Chancellor to deliver a successful, sufficiently capitalised UK Infrastructure Bank. The letter set out some immediate reactions to the announcements made in March, and outlines the groups hopes for the more detailed Framework to be published in the Spring.  

The letter was signed by: 

Nick Molho, Executive Director, Aldersgate Group 

Sean Kidney, CEO, Climate Bonds Initiative  

Dr Andy Kerr, UK and Ireland lead, EIT Climate-KIC  

Alice Bordini Staden, Managing Director, GLC Advisors ltd  

Nick Robins, Professor in Practice – Sustainable Finance, Grantham Research Institute, London School of Economics  

Dimitri Zenghelis, Senior Visiting Fellow, Grantham Research Institute, London School of Economics, and Special Advisor, Bennett Institute for Public Policy, University of Cambridge  

Shaun Spiers, Executive Director, Green Alliance  

Ingrid Holmes, Executive Director, Green Finance Institute  

Stephanie Pfeifer, CEO, IIGCC  

Sarah Gordon, CEO, Impact Investing Institute  

James Cameron  

Gavin Templeton, Partner, Pollination  

Nick Mabey, CEO, Third Generation Environmentalism  

Kate Bell, Head of Rights, International, Social and Economics Department, Trades Union Congress  

Dr. Thomas Marois, Senior Research Fellow Patient Finance and Public Banking, UCL Institute for Innovation and Public Purpose  

Dr Olga Mikheeva, Research Fellow in Public Banking, UCL Institute for Innovation and Public Purpose, UK  

James Alexander, Chief Executive, UKSIF  

Polly Billington, Director, UK100 

Read the full letter in response to the UK Infrastructure Bank here.

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