Chief secretary to the Treasury Danny Alexander said yesterday a “platform” to allow UK pensions funds to invest in infrastructure projects should be set up by January.
Alexander said he expects the platform to raise £2bn by January and start investing in key projects. He added the government had received written confirmation from seven UK pension schemes that they would fund start-up costs and confirming their intentions to release initial capital funding.
The new Pension Infrastructure Plaftorm - set up between government with the National Association of Pension Funds and the Pension Protection Fund, will enable all UK pension funds to invest directly in UK infrastructure assets.
Proposals to increase pension investment in infrastructure plans were outlined in last year’s Autumn Statement.
Alexander added there had been a “long standing weaknesses in the quality of our infrastructure” and that infrastructure is “centre of our strategy to kick-start our economy”.
“The government’s National Infrastructure Plan, and the steps we are taking to implement it, are a clear recognition of the importance of infrastructure in achieving our goal,” added Alexander.