Pension schemes and other private investors have pledged over £10 billion to UK infrastructure, innovation and growth projects, coinciding with government plans to streamline bureaucracy.
At the Regional Investment Summit in Birmingham, attended by more than 350 business leaders, mayors and investors, Chancellor Rachel Reeves emphasised the importance of long-term capital in driving the nation’s growth agenda.
Following July’s Pensions Investment Review, she said 17 of the UK’s largest pension schemes had signed the Mansion House Accord, pledging to allocate more assets to productive UK investment. She said this has now evolved into the Sterling 20, a new investor-led partnership of pension funds, insurers and local government schemes committed to backing British infrastructure and innovation.
Reeves said early commitments include £2 billion from Legal & General for housing, transport and start-up finance and £85 million from Nest into broadband expansion and renewable energy projects.
She also announced a £6.5 billion investment from Welltower to expand elderly care facilities, and The Crown Estate’s purchase of land at Harwell East, which will create 30,000 jobs, 400 homes and add £2.5 billion to the economy.
Additionally, the National Wealth Fund will also channel £104 million into wind projects in Norfolk and Orkney and a heat network in Hull, alongside new specialist teams to help regional authorities accelerate major infrastructure schemes.
Reeves said: “Our mission is clear: to create the right environment for investment through our regulatory reforms, to crowd in capital through our public financial institutions, to break down silos to collaboration on local projects, and to support innovation and growth throughout the UK.”
Reeves also confirmed that over 100,000 firms will qualify for simpler corporate reporting rules, under measures designed to cut administrative burdens by 25 per cent, a key commitment in the Modern Industrial Strategy.
The reforms will streamline reporting for small businesses, such as family-run cafes and microbreweries, removing the need for detailed directors’ reports and extensive supply accounting.
According to the Treasury, £1.5bn in savings have already been identified since the March Regulation Action Plan, with the 25 per cent target expected to return £6bn a year to businesses and save firms around 200 hours annually in admin time.
Reeves added: “Over the last year, we have welcomed billions of pounds of foreign investment in the UK in addition to the domestic investment made by businesses every day. But these are not just numbers. These are higher wages. They are better homes. It’s the transport, energy and digital infrastructure that underpins our nation.”