Leeds' new UK Infrastructure Bank opened by chancellor

The Leeds institution is due to help to finance projects in every region and nation of the UK, said the government

The UK's first infrastructure bank set up to channel billions of pounds into big projects and help tackle climate change has been launched in Leeds.

Chancellor Rishi Sunak opened the new financial institution on Thursday.

In the March Budget, Mr Sunak said the UK Infrastructure Bank (UKIB) would support regional economic growth and help get rid of the north-south divide.

Leeds' position as an established financial hub would benefit the bank, the government has said.

The idea is that UKIB is to invest in infrastructure projects in sectors such as clean energy and transport.

It will help to finance projects in every region and nation of the UK, said the government.

Mr Sunak said UKIB would "accelerate our ambitions for tackling climate change while creating new opportunities across the UK".

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Rishi Sunak visited the new Leeds office and hosted a roundtable discussion with business leaders

The bank is to get an initial £12 billion of capital and £10 billion of government guarantees and hopes to unlock more than £40 billion of private investment.

Chris Grigg, chair of UKIB said he looked forward to "building strong partnerships with project sponsors, institutions and local leaders".

Sir Roger Marsh, chair of Leeds City Region Enterprise Partnership, said putting the institution in Leeds would be "a real catalyst for change and a major driver of our post-pandemic recovery".

Tom Riordan, chief executive of Leeds City Council, also gave the new bank a "warm welcome".

UKIB would be able to issue loans, equity, or guarantees to private projects.

It intends to increase its lending over time and will allow local authorities to borrow money later in the summer, the government added.