Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Osborne signs deal with UK pension funds to provide new infrastructure spending

Chancellor George Osborne yesterday signed a memorandum of understanding with the National Association of Pension Funds (NAPF) and the Pension Protection Fund (PPF) to help provide new funds for infrastructure.

Chief secretary to the Treasury Danny Alexander today said that the funds would invest around £20bn in the next few years. This money would be in addition to a £5bn cash bonus that the government plans to spend on infrastructure in the next two to three years. This cash will come from other government departments that have unspent cash. The Department of Energy and Climate Change’s £1bn pot for its carbon capture and storage scheme is one source that will be plundered.

The agreement with the pension funds sets out how the government will work with the NAPF and PPF to help facilitate and increase their investment in infrastructure.

NAPF chief executive Joanne Segars said this could be “win-win” for UK infrastructure. “The UK desperately needs to update its infrastructure, and pension funds are looking for inflation-linked, long-term investments,” said Segars.

The NAPF represents 1,200 pension funds and its members hold around £800bn in assets, while the PPF protects 12M pension scheme members and currently has an investment portfolio of over £6bn. But the current investment model makes it difficult for them to invest efficiently in infrastructure, acccording to the NAPF.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.