The bank will operate UK-wide, be based in the north of England, and support the government’s ambitions on levelling up and net zero.
The bank will also be able to lend to local and mayoral authorities for key infrastructure projects, and provide them with advice on developing and financing infrastructure.
Some details is set out in the National Infrastructure Strategy.
The government said that it was “committed to the model of independent economic regulation, but will refine it to ensure it provides a clear and enduring framework for investors and businesses and delivers the major investment needed in decades to come, while continuing to deliver fair outcomes for consumers.”
The government intends to produce a policy paper on economic regulation in 2021, which will consider regulator duties, injecting more competition into strategic investments, and the benefits of a cross-sectoral strategic policy statement.
The government will continue to develop new revenue support models and consider how existing models, such as the regulated asset base model and contracts for difference, used by the water and energy sectors, can be applied in new areas.
The National Infrastructure Strategy makes clear that while the government “remains open to new ideas from the market” the private finance initiative model (whether in its PFI or PF2 guise) has been utterly discredited and will not be making a return.