The strategy and bank are to support the economy after the coronavirus and the government believes it will help to kickstart growth and support jobs.
Government investment in economic infrastructure will be £27bn in 2021-22, according to the plans, which includes a £4bn levelling-up fund.
Announced as part of the Spending Review, the strategy is based around three central objectives: economic recovery, levelling up and unleashing the potential of the union, and meeting the UK’s net zero emissions target by 2050, HMT Treasury said.
“These objectives will be supported by the creation of a new infrastructure bank to catalyse private investment in projects across the UK; as well as through a comprehensive set of reforms to the way infrastructure is delivered,” it added.
The bank will also be available to metropolitan mayors and local authorities, along with private investors, and will be headquartered in the North of England.
Delivering the Spending Review, Sunak said: “We’re publishing today a comprehensive new National Infrastructure Strategy.
“To help finance our plans, I can also announce we will establish a new UK infrastructure bank.
“Headquartered in the north of England, the bank will work with the private sector to finance major new investment projects across the UK – starting this spring.”
The levelling-up fund will allow local areas to bid directly to fund local projects of up to £20m each.
This includes projects such as bypasses, bus and cycle lanes, upgraded railway stations, libraries, museums, and galleries.
The fund will be jointly managed between the Treasury, the Department for Transport and the Ministry of Housing, Communities and Local Government.
“Projects must have real impact. They must be delivered within this Parliament. And they must command local support, including from their Member of Parliament,” Sunak said.