Pickles floats plan to invest council pensions in infrastructure

Aaron Morby 12 years ago
Share

Councils will be free to pump as much as £22bn more of pension fund investments into infrastructure under plans unveiled by Local Government Secretary Eric Pickles today.

The plans would supporting the Government’s growth plans to find alternative funding to support a building of more homes, roads or high speed railways.

Pickle’s proposals would potentially allow councils to double the amount they can legally invest from their pension funds directly into key infrastructure projects.

The Local Government Pension Scheme England and Wales is administered by 89 separate local funds that hold combined investment assets worth £150bn.

Pension fund rules are there to make sure investment risks are spread across different types of investments to give taxpayers long-term protection. Fund managers are currently limited in the amount they can invest via partnership arrangements, which includes many types of infrastructure investment.

Proposals out for consultation today include raising the limit of 15% to 30%, giving them the scope to inject up to £45bn in projects.

Eric Pickles said: “Unlocking Town Hall pension pots so they can be used to invest in vital infrastructure projects is a common sense decision that will help this country complete on a global scale and get Britain building.

“By lifting the restrictions controlling local pension investments councils could pump a further £22bn directly into job creating infrastructure projects that will boost our economy.

A report by the Future Homes Commission earlier this month said council pension funds could be used to build key infrastructure projects like new homes in the UK without increasing the government deficit.

Latest news

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
20 hours ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
20 hours ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
19 hours ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
20 hours ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
20 hours ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
20 hours ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
21 hours ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
21 hours ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
2 days ago

Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.
2 days ago

Green light for £80m Leith waterfront revamp

Build-to-rent homes and student accommodation scheme to be built
2 days ago

Tilbury Douglas clears Interserve legacy jobs to return to profit

Revenue tops £500m in first year as standalone contractor
3 days ago

Land deal paves way for Manchester civil service office hub

Government buys five acres at former Central Retail Park
2 days ago

Speller Metcalfe wins Wolverhampton library upgrade

Full works are due to start in the autumn
2 days ago

Skills shortage puts big infrastructure projects at risk

Government failing as an intelligent client and now over-reliant on consultancies
3 days ago

Contractors face further insulation board price hikes

Cost of PIR insulation boards set to rise another 10%
3 days ago

Henry Boot wins £36m Rotherham Markets job

Project involves upgrading existing market and building a new library
3 days ago

Keltbray hires new head of infrastructure procurement

Lukasz Olszewski will oversee rail, energy and highways business units
3 days ago

Tunnel fit out robot to revolutionise civils work

Costain and VVB Engineering part of innovative consortium
3 days ago

Funding deal for £86m wind turbine test centre

Latest investment at National Renewable Energy Centre in Blyth
4 days ago

Plan in for Manchester ‘upside-down’ 18-storey tower

Landmark cantilevered NXQ building plan for city Northern Quarter
4 days ago

London 25km Super Sewer hooked up for commissioning

Tideway completes connection to existing Lee Tunnel sewer system
4 days ago

£200m Lincoln ring-road approved

North Hykeham Relief Road granted planning permission
4 days ago

£1bn Manchester Airport City plan rebooted as new sci-tech hub

Plan pivots from offices to science and manufacturing campus, called MIX Manchester
5 days ago

Record results at maintenance specialist Renew

Infrastructure maintenance work continues to pay off for contractor
4 days ago

Barhale lands £21m shaft scheme for Thames Water

Civils specialist bags latest upgrade deal on Thames Water Ring Main
4 days ago

Caddick names new north east director

Former Laing O'Rourke project lead joins Yorkshire contractor
4 days ago

Mount Anvil wins London Camden estate rebuild

Deverloper wins £133m Bacton Phase 2 development in Gospel Oak
5 days ago

London Met Uni seeks firm for £280m estate upgrade

A single partner contractor will deliver 10-year building upgrade plan
5 days ago

Top 30 M&E contractors set for growth – ranking

Growth in data centres and commercial refits creates optimism for year ahead
5 days ago

Contractor services