Insurers, pension funds and asset managers have been quick to fall in line behind the new government’s much-heralded infrastructure strategy, turning up in force at the inaugural meeting of the British Infrastructure Taskforce hosted by Chancellor Rachel Reeves at 11 Downing Street.
A lynch pin of the strategy is achieving a huge uplift in private sector investment in public sector infrastructure projects, writes Contributing Editor David Worsfold.
This initial meeting was full of fine words and lots of general promises, although many came with a large dose of caution. Typical of these was Stephen Cohen, Chief Product Officer, Blackrock who said afterwards:
“There’s a rapidly growing pool of capital to invest in infrastructure, but deploying it requires pragmatism in policy. We’re pleased to be working with the government in identifying policies that will support private investment.”
Others who attended the meeting were a little more specific about the policy areas they will be watching:
“The right combination of policies and ideas will unlock that capital and boost growth. From planning reform and better use of public sector pension funds to a streamlining of institutions and regulations, there is a lot that Government can do to crowd in more private investment and deliver social value”, was the verdict of Tracy Blackwell, CEO of PIC.
The launch of the Taskforce came days after the International Investment Summit hosted by Prime Minister Kier Starmer and was accompanied by the launch of a new National Infrastructure and Service Transformation Authority (NISTA) which the government says will bring oversight of strategy and delivery under one roof.
The core mission of NISTA will be to support the development and implementation of the ten-year infrastructure strategy in conjunction with industry.
Chancellor Rachel Reeves said this package of initiatives was aimed at delivering on one of the government’s key pledges:
“Increasing investment in infrastructure is a vital part of delivering on our number one mission to grow the economy and create jobs.
“Just days after our International Investment Summit, we are delivering on our promise to work with business to drive growth across the country, and the expertise of this Taskforce will be invaluable in the weeks and months ahead.”
It fell to Chief Secretary to the Treasury Darren Jones MP to offer some more clues as to exactly what the government expects:
“We are serious about ending the cycle of underinvestment that has plagued our infrastructure systems for over a decade. The best way to do that is to design the solution with business in the room. That’s what this taskforce is all about.
“The Taskforce will meet regularly, offering insights that deliver long-lasting solutions for job creation, growth, and environmental goals.
“This builds on the success of the International Investment Summit, which saw hundreds of top international investors attend the event, £63bn of confirmed investment into Britain, along with the launch of the £27.8bn turbocharged National Wealth Fund.”
Although there was some mention of ensuring new infrastructure projects achived environmental goals, ministers were careful not to position this as an Bidenesque enviromentally-led green recovery programme.
It was an impressive line-up of major investors who joined the Chancellor, Chief Secretary and Treasury officials.
- Tracy Blackwell, CEO, Pension Insurance Corporation;
- Anne Richards, Vice Chair, Fidelity International;
- Charlie Nunn, CEO, Lloyds Banking;
- Vivian Nicoli, Managing Director, CDPQ;
- Andy Briggs, CEO, Phoenix Group;
- Ian Stuart, CEO, HSBC UK;
- Andrea Rossi, CEO, M&G;
- Stephen Cohen, Chief Product Officer, BlackRock (represented by Helen Lees-Jones Global Head of Sustainable & Transition Solutions);
- Deepa Bharadwaj, Head of Infrastructure Europe, IFM Investors;
- Mike Regnier CEO, Santander UK;
- Sir Douglas Flint, Chairman, ABRDN;
- Nick Smallwood, CEO, Infrastructure and Projects Authority;
- James Heath, CEO, National Infrastructure Commission;
- John Flint, CEO, National Wealth Fund.