Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment the Government has made of the potential merits of remaining a member of the European Investment Bank after the UK leaves the EU.

In her speech in Florence on 22 September 2017, when setting out the UK’s aims for the Implementation Period, the PM made clear that; “The United Kingdom will cease to be a member of the European Union on 29th March 2019. We will no longer sit at the European Council table or in the Council of Ministers, and we will no longer have Members of the European Parliament.”

This means that in March 2019 the UK will no longer be a full member of the EIB as it will no longer be a Member State. This also means that, as agreed in December, repayment of the UK’s capital will commence in 2019.

The UK considers that it may prove to be in the mutual interest of all sides for the UK to maintain some form of ongoing relationship with the EIB Group after leaving the EU, and we will explore these options with the EU as part of the negotiations on the future relationship.

And as the Chancellor said in his Mansion House speech last year, if we do not maintain our relationship with the EIB group, we will be prepared. The government has already taken steps to increase support for infrastructure finance and high-growth businesses, and will keep that support under review as negotiations progress.

The British Business Bank has already raised the limits on the amount it can invest in venture capital funds from 33% up to 50%, and brought forward of some of the £400m additional investment that was announced at the Autumn Statement 2016, providing the BBB with the flexibility to significantly increase its investment. The Infrastructure and Projects Authority has also broadened the range of the UK Guarantees Scheme by offering construction guarantees for the first time.