CBI comments on proposals to double potential council infrastructure spend
7 Nov 2012 02:02 PM
The CBI yesterday commented on proposals from the Local Government Secretary Eric Pickles that would potentially allow councils to double the amount they can legally invest from their pension funds directly into key infrastructure projects.
Rhian Kelly, CBI Director for Business Environment, said:
“Unlocking pension fund investment is critical to improving the UK's infrastructure, so businesses will be heartened that Government is listening to the recommendations of the CBI and others, and taking action to lift barriers and attract new sources of funding.
“Local Government pension funds are some of the largest in the country and many already have experience of investing in infrastructure and housing. Infrastructure projects should be a natural fit for these funds, which have very long time-horizons and are looking for a healthy investment return. Lifting restrictions should allow them to take a more prominent role in deepening pension funds' involvement in infrastructure financing.
"But we cannot afford to rest on our laurels. More must be done to ensure we deliver a pipeline of investable projects and ensure that the real priorities – the projects of national economic significance – are given all possible support.”
Notes to Editors:
In May the CBI launched its An Offer They Shouldn’t Refuse report into UK infrastructure.