Investing for the future: Why we need a British Investment Bank
Published date: 19 Sep 2012
Download full publication Purchase via print on demand
This report presents a detailed blueprint for what a British Investment Bank should look like in order to be fully effective in filling a gap in the UK banking system.
The idea of such a Bank has been around for a number of years, but only in the last five has it achieved any prominence in public debate. In September the business secretary, Vince Cable, announced tentative plans for a British Investment Bank.
IPPR's report examines the models provided for national investment banks by international case studies and sets out the main lessons that emerge.
It says that a British Investment Bank should have the following features:
- Operation: The Bank should be 100 per cent state-owned but there must be a clear dividing line between the role of government and the activities of bankers in making lending decisions
- Scope: A fully fledged British Investment Bank should be able to invest in infrastructure projects and to provide long-term financing for small and medium-sized businesses across the whole economy
- Size: The government should inject an initial £40 billion of capital over four years into the Bank, and the Bank should be allowed to raise funds on capital markets up to a leverage ratio of 2.5:1 (that is, up to an initial £100 billion).
Tony Dolphin, Senior Economist and Associate Director for Economic Policy
In the news
George Osborne accused over Brit recovery
The Sun - 01 Jan 2013
Think Tank Warns Of Sluggish 'Groundhog' 2013
Sky News - 01 Jan 2013
Sluggish growth at home and crisis in Europe – 2013 to be a ‘groundhog year’
Metro - 01 Jan 2013
Fact check: inside Cable's bank
Channel 4 Fact Check - 25 Sep 2012
Tony Dolphin on Cable's investment bank (13mins55)
BBC Radio 4 World at One - 24 Sep 2012
Cable reveals plan for £1bn bank
Independent - 24 Sep 2012
Merge infrastructure and business bank
Huffington Post - 20 Sep 2012
State bank would need £40bn, says IPPR
Financial Times - 19 Sep 2012
Government bank 'needs £40bn of state funds'
Telegraph - 19 Sep 2012
Business bank will need £40bn
BBC News Online - 19 Sep 2012
Tony Dolphin on the British Investment Bank (19mins04)
Wake Up to Money - 19 Sep 2012
Author(s) : Will Straw - 18 Jan 2013
Author(s) : Tony Dolphin - 01 Jan 2013
Author(s) : Tony Dolphin - 21 Sep 2012
You may be interested in...
IPPR in the news
Ministers are 'not trusted'
Daily Mirror - 14 Apr 2014A real alternative to loan sharks
Sunday People - 14 Apr 2014Politicians of all stripes suffer sharp fall in trust
Telegraph - 14 Apr 201436% have faith in the parliamentary system
Metro - 14 Apr 2014
Labour pledges to introduce Regional Ministers
ITV News - 09 Apr 2014Putting the voice of English regions at the heart of decision-making
The Independent - 09 Apr 2014Labour's plan to 'bust open' civil service
Guardian - 09 Apr 2014Young electorate showing disenchantment with today’s politics
Financial Times - 08 Apr 2014
Labour's plans to boost Whitehall diversity
Evening Standard - 07 Apr 2014Dugher plan to 'bust open' Whitehall to 'working class'
BBC News Website - 07 Apr 2014Dugher will announce higher diversity targets for civil service
Independent on Sunday - 07 Apr 2014Tim Finch on The Big Migration Debate
BBC World Service - 07 Apr 2014
Michael Dugher: We need a more representative civil service
Mirror - 07 Apr 2014Politicians don't care about young people
Huffington Post - 07 Apr 2014Spencer Thompson on European jobs and skills (8min 30)
BBC World Service - 04 Apr 2014Graeme Henderson on greater collaboration between Scotland and North (1hr 36)
BBC Radio Cumbria - 04 Apr 2014
Summit will address funding for NW creatives
Manchester Evening News - 03 Apr 2014The UK's future lies in well-skilled work
The Guardian - 02 Apr 2014Hancock unveils 77 new tech levels at European Jobs and Skills Sumit
FE Week - 02 Apr 2014It’s not just prison books that are under threat, it’s British justice
The Telegraph - 02 Apr 2014