Affordable housing and rural broadband provision will be the first beneficiaries of a new regional investment drive by 20 of Britain\u2019s biggest pension providers and insurers.<\/p>\n
Legal & General has made a \u00a32 billion commitment to invest in delivering 10,000 affordable homes by 2030, while Nest is to invest \u00a340 million in fibre broadband in Scotland and northern England, and provide \u00a3100 million to Schroders Capital to make UK investments. <\/p>\n
The companies are part of a new partnership called Sterling 20 that will be established at a first regional investment summit with Rachel Reeves in Birmingham this week. <\/p>\n
The Treasury said the initiative was designed to \u201cchannel the nation\u2019s savings into key infrastructure and fast-growing businesses in key modern industrial strategy sectors like AI and fintech\u201d. <\/p>\n
The 20 participants also include M&G, Phoenix, Aviva, Royal London and the Universities Superannuation Scheme. <\/p>\n
The government is trying to encourage British pension funds to invest more in the UK and especially in growth industries and private businesses. \u201cEven a small shift towards investing in UK infrastructure would unlock billions,\u201d the Treasury said. <\/p>\n
In May, the government co-ordinated the Mansion House accord<\/a> in which 17 pension providers committed to invest at least 5 per cent of their main default funds in UK private markets. These 17 providers have all joined Sterling 20, alongside Rothesay and PIC, the annuity providers, and the Pension Protection Fund. <\/p>\n \u2022 Seema Shah: Give pension funds a reason to invest in the UK \u2014 don\u2019t threaten them<\/a><\/p>\n In the summer the government revamped the Office for Investment \u2014 a joint unit of the Treasury, business department and No 10 \u2014 to help encourage investment in Britain.<\/p>\n The Treasury said that the office\u2019s \u201cunique position as a bridge between government, investors and local leaders will allow it to match transformational investment opportunities with capital\u201d.<\/p>\n Ant\u00f3nio Sim\u00f5es, chief executive of Legal & General, said: \u201cOur \u00a32 billion commitment, targeted at housing, infrastructure, and urban regeneration, will help unlock the investment needed in productive assets across the country \u2014 creating jobs, strengthening communities, and driving both regional and national growth.\u201d <\/p>\n