HSBC, Santander and Blackrock among firms advising Labour on private investment
City firms HSBC, Santander and Blackrock are among those advising the Labour Party on private sector investment following the launch of a new infrastructure council.
Shadow chancellor Rachel Reeves led the first meeting of the group, called the British Infrastructure Council (BIC), at M&G’s City offices today ahead of the Autumn Statement.
Members also include M&G, IFM Investors, Pension Insurance Corporation, Phoenix Group, CPP Investments, Border to Coast, CDPQ, Lloyds Banking Group, and Fidelity International – who Labour say are all involved in an independent advisory capacity.
The aim is to tackle infrastructure delivery challenges – such as clean energy, transport and digital connectivity – by partnering with the private sector to unlock capital, Labour said.
Reeves, who has made improving National Grid connections and streamlining the planning system key planks of her party’s offer, said: “Under the right conditions, there are significant pools of private capital available to finance investment in critical national infrastructure.”
But she stressed that triumphing over global competitors would require “new models of collaboration between government and investors,” which she said the BIC would help create.
Lloyds boss Charlie Nunn said he welcomed the “opportunity” but stressed the firm “works with all those trying to improve how major projects are designed, financed and delivered”.
Phoenix Group chief executive Andy Briggs said: “Currently only nine per cent of UK pension funds are invested in alternative assets, compared to 23 per cent in other major markets.
“If we get this right, Phoenix Group could invest up to £40bn in sustainable and/or productive assets to support economic growth and the climate change agenda.”
The new body, which is set to meet every six months, was meant to be announced at Labour’s conference in Liverpool last month – but was suddenly pulled after firms reportedly dropped out following persuasion from senior Tories that the timing risked appearing political.
Working groups will be set up to focus on specific issues and report back to the BIC. Issues discussed this morning included how to better communicate strategic priorities to potential investors; new financing mechanisms; and maximising the economic value of infrastructure.
Attending the 10.30am get-together from Labour were Reeves; shadow chief secretary to the Treasury, Darren Jones; and shadow investment and small business minister Rushanara Ali – standing in for shadow business minister Jonathan Reynolds, who will usually attend.
Reynolds spoke at the Confederation for British Industry (CBI)’s conference, where he said the UK’s 70-year high tax burden was due to “low growth, that is the fundamental reason”.