Post-Brexit reforms will drive up pension fund investment in UK infrastructure, survey finds
More than half of pension scheme leaders expect to increase their investment in UK infrastructure projects in the next year, with many arguing a series of pending post-Brexit reforms will be the “key driver” behind their plans, according to a new survey exclusively shared with City PM
Over 60 per cent (62 per cent) of pension scheme leaders are expecting to boost investment in UK infrastructure in the next year, the survey, conducted by Censuswide on behalf of the investment fund GLIL Infrastructure, found.
Just under half (44 per cent) said the government’s so-called Edinburgh Reforms would be the “key driver” behind this investment decision.
The Edinburgh reforms, announced by the government in December last year, are designed to “unlock investment and turbocharge growth” by repealing “burdensome pieces of retained EU law”.
But many pension funds and insurance firms have complained that the government is not moving quick enough on passing the proposed changes.
Ted Frith, Chief Operating Officer at GLIL, told City PM that the Edinburgh Reforms, when passed, will “pave the way” for pension fund leaders to unlock capital that could be invested in infrastructure.
The broad ranging survey – which received responses from 300 pension leaders – also revealed that hitting the UK’s net zero ambitions was their top motivation for increasing infrastructure investment. Delivering stable, inflation-linked returns and powering the UK economy closely followed.
Frith said that “infrastructure helps pension schemes to make a valuable contribution to society as well as provide stable returns for their members, at a time where investment activity is under more scrutiny than ever before.”