Leeds Chosen As Home Of New National Infrastructure Bank In Drive For 'Green Industrial Revolution'

Leeds City Council and the Leeds City Region Enterprise Partnership have welcomed the news that Leeds will be the home of the country’s first-ever infrastructure bank.

The Chancellor of the Exchequer, Rishi Sunak, today used his Budget speech to announce that the city has been chosen as the location for the bank, which will invest in public and private projects across the UK.

It will aim to drive the Government’s plans for a ‘green industrial revolution’ while also supporting local and regional economic growth.

Councillor James Lewis, leader of Leeds City Council, said:

“The news that Leeds will be the home of the new national infrastructure bank is a vote of confidence in the city and everyone who lives here.

“This move will give Leeds a central role in decisions that will shape the country’s future and its potentially transformative power should not be underestimated – particularly when working in tandem with the new Treasury North campus planned for Darlington.

“I am also determined to ensure that local people reap the benefits that it should bring in terms of job creation.

“As a council, we care deeply about climate change and the environment, so it is particularly exciting that our city will be at the heart of projects designed to drive forward what is sometimes described as the green industrial revolution.

“We have spent years telling people that Leeds is the place to be and it is really gratifying that our voices have now been heard.”

Roger Marsh OBE DL, chair of the Leeds City Region Enterprise Partnership and NP11 group of Northern local enterprise partnerships, said:

“Locating this powerful national institution in our region will be a real catalyst for change and a major driver of our post-pandemic recovery. It will build on our long-term commitment to ensuring that the benefits of economic growth are felt by all of our communities.

“The UK Infrastructure Bank will play a crucial role in supporting the Government to achieve its pledge to level-up the UK, reach net-zero carbon by 2050 and accelerate COVID-19 recovery.

“This landmark decision is testament to the strength of our financial and professional services sector and will ensure a strong and successful long-term economic outlook for the city region, the North and the UK. It will act as a catalyst to inspire economic growth and business confidence at a time when it is needed most and it is pleasing that it will be operating from Leeds.

“The move also signifies a new page in the relationship between the Government and cities and regions across the North, where we work in partnership to unlock economic potential and deliver on the ambitions for levelling-up all parts of the country.”

The UK Infrastructure Bank will have an initial capitalisation of £12bn and is expected to support at least £40bn of investment in infrastructure projects.

It will begin operating this spring in an interim form before ramping up its activities over the following months, with a primary focus on sectors including clean energy, transport and digital.

John Connor, Leeds-based partner at law firm Womble Bond Dickinson,commented:

"We welcome the Chancellor's announcement that a new Infrastructure Bank will be opening in Leeds in the Spring. This important development builds on last month's news that the Government would be committing £10m investment to Leeds to make it the UK's green finance capital. The core objectives of the Bank will be to help tackle climate change, and support regional and local economic growth. This is very positive news for country as a whole, and I expect to see the Bank in due course providing funding to unlock projects that might not otherwise be fully funded by the private sector, and making a meaningful contribution to support new clean energy, transport, digital, water and waste projects across the UK."

Guillaume Fleuti, head of infrastructure & industrials at Lloyds Bank, said:“The Chancellor’s announcement on the UK Infrastructure Bank – providing more detail and following up on commitments made last year – is a very positive step. The focus on levelling up and transiting to net zero in particular is key. In the year of COP26, with the eyes of the world trained on Britain, it’s an opportunity to take a leadership position, as the UK already has in areas like offshore wind.

“It’s important that the UK Infrastructure Bank uses its finite funding in a targeted way. Some areas of infrastructure, such as well-established renewable technology, benefit from strong investor demand, while others are less well served. In this sense the Bank can support existing investors and lenders in ensuring that sufficient capital is available through co-investment opportunities, among other tools. As one of the UK’s leading infrastructure finance providers already, we’re looking forward to supporting the Bank and partnering to provide additional funding to a part of the economy that will be crucial to Britain’s recovery.

“The location of the bank in Leeds also sends a strong signal that the government remains committed to its attempts to ‘level up’ the UK, as well as acknowledging the North’s existing strengths in sustainable infrastructure.”