Pledge from six insurers comes as Government outlines £375bn national infrastructure plan funded in part by sale of Eurostar stake
/ Source: The Telegraph
A group of British insurers have committed to spend £25bn on infrastructure investment over the next five years as part of a Government push to give the green light on a number of major construction projects.
The funds will be used alongside taxpayer’s money and receipts from the sales of assets including the Government’s 40pc stake in Eurostar to boost existing and new transport, energy and broadband services to power the British economy.
Coming a day ahead of the Autumn Statement and on the back of research showing a six-year high in the construction industry, the news will be presented as a significant feather in the cap for George Osborne and his ongoing recovery policies.
Six major UK insurers - Prudential, Aviva, Legal & General, Standard Life , Friends Life and Scottish Widows - have made the commitment following negotiations led by Lord Deighton, Commercial Secretary to the Treasury, and the Association of British Insurers.
The pledge follows last week’s resolution of the European Union’s Solvency II directive, which will allow insurers to invest in a wider number of assets to deliver long-dated returns. It will be announced by Lord Deighton and Danny Alexander, chief secretary to the Treasury, this morning at the Institution of Civil Engineers in London.