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<p>The EIB has lent to a range of sectors in the UK, including infrastructure projects
and UK businesses. As you may know, the UK will cease to be a member of the EIB Group
(consisting of the EIB and EIF) on exit day, as membership is only available to EU
member states. Under the terms of the EU Withdrawal Agreement, the UK has secured
the return of its €3.5bn capital in the European Investment Bank (EIB) through twelve
annual instalments. We have reached a fair settlement with the EU, honouring commitments
we made during our period of membership, and have ensured a fair deal for UK tax payers.</p><p>
</p><p>Alongside the terms of exit set out in the withdrawal agreement, the Political
Declaration, which sets out the framework for the future relationship between the
EU and the UK, states that both parties note the UK's intention to explore options
for a future relationship with the EIB Group. As we leave the EU, we continue to consider
options for our future relationship and discussions on this will form part of the
wider negotiations on the future EU-UK relationship.</p><p> </p><p>However, while
Government wishes to explore a future relationship with the EIB Group, we recognise
the need to be prepared for a range of scenarios. The Government already has a range
of existing tools to support infrastructure finance, including the UK Guarantees Scheme
and funds that support the development of new technologies including the Digital Infrastructure
Investment Fund and Charging Infrastructure Investment Fund. The Infrastructure Finance
Review, launched at the Spring Statement, explores future challenges in infrastructure
finance, including new technologies, and seeks views on the Government’s existing
tools. The review will conclude alongside the National Infrastructure Strategy at
the Spending Review later this year. The Government also provides support for business
and emerging technologies Research and Development (R&D) through a wide range
of measures, including the largest increase in direct public R&D spending in 40
years, R&D tax reliefs, and the £2.5bn British Patient Capital programme, enabling
long-term investment in innovative companies.</p><p> </p><p>Government support announced
following the Patient Capital Review means that the British Business Bank has the
capacity to make venture capital commitments this financial year that would exceed
the combined average annual commitments from the European Investment Fund and British
Business Bank in the years preceding the UK’s vote to leave the EU. In April, the
government made an additional £200m support for venture capital and growth finance
available through the British Business Bank to support the financing of smaller businesses.</p>
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