Government told to come clean on EIB cash and urged to set up infrastructure bank
Theresa May has been urged to “come clean” about why the Government is not claiming Britain’s share of 7.6 billion euros (£6.6 billion) from the European Investment Bank as part of its Brexit plans.
The Lords EU Financial Affairs Sub-Committee has called on the Conservative Party to give taxpayers a “better account” of why it has not claimed any of this money.
Under the Prime Minister’s Withdrawal Agreement, the UK will receive the 3.5 billion euros (£3 billion) of capital it has paid into the EIB.
However, Britain will not receive any share of the profits that the EIB has accumulated, nor any interest or dividends, which the committee says could amount to 7.6 billion euros (£6.6 billion).
The Lords report questions why the Government has not claimed any share of the money.
Baroness Falkner of Margravine, chairwoman of the committee, said the Government must “come clean about why it has not claimed any share of the EIB’s 7.6 billion euros of profits”.
Separately, the report argues that Britain should consider creating a state-backed infrastructure bank after Brexit to replace funding the country will lose from the European Investment Bank.
Since joining the EU in 1973, the UK’s infrastructure has been the beneficiary of more than 118 billion euros (£103 billion) of lending from the EIB.
This includes money for Crossrail, London’s “Super Sewer”, the expansion of Manchester’s tram network and Scotland’s Beatrice offshore windfarm.
In the last decade alone, the EIB has pumped 50 billion euros (£43.5 billion) into the British economy, and in 2015 accounted for a third of total funding of UK infrastructure projects with £5.6 billion across 40 different schemes.
However, the country will lose access to the EIB after Brexit.
“The UK’s infrastructure, and the industries that depend on infrastructure spending, will be hurt if the Government does not quickly find a way of plugging the funding gap that will be created if access to the EIB is lost after Brexit,” Baroness Falkner added.
“We’re calling on the Government to give serious and swift consideration to the creation of a UK infrastructure bank.
There has already been a “marked decline” in funding from the EIB since the referendum and triggering of Article 50, which has fallen 87% since 2016.
The report said that, despite this, and the fact that the EIB will completely stop supporting new UK projects after Brexit, the Government has “said little about the future relationship”.
