Labour meets BIC and says it would hold global investment summit
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Shadow chancellor Rachel Reeves is meeting with the British Infrastructure Council – including a pension fund investment chief – on Monday to discuss infrastructure delivery challenges. Labour would also hold a global investment summit in the first 100 days of government to attract capital to the UK.
Members of the Council will meet today “to discuss what a future Labour government could do in the first few months of power to kickstart growth and attract investment”.
The meeting with BIC includes Joe McDonnell, chief investment officer at Local Government Pension Scheme pool Border to Coast.
The other meeting participants are:
- Rob Groves, CIO at Pension Insurance Corporation
- Andrea Rossi, chief executive officer at M&G
- Charlie Nunn, CEO at Lloyds Banking Group
- Vivian Nicoli, head of European infrastructure and managing director, CDPQ
- Mike Regnier, CEO at Santander
- Deepa Bharadwaj, head of infrastructure investment for Europe at IFM Investors
- Stephen Cohen, chief product officer and head of global product solutions at BlackRock
"If elected in a few weeks’ time, I am determined that a Labour government will hit the ground running to show that Britain is open for business and to begin to attract the investment we need to make working people better off. I am looking forward to discussing these issues with members of our British Infrastructure Council,” said Reeves.
Successive governments have turned to pension funds for private capital to support the UK economy since the financial crisis. The latest Mansion House set of reforms by Jeremy Hunt propose to allow easier surplus extraction, and to encourage surplus creation by defined benefit schemes, while LGPS funds are to invest 5% in levelling up assets and encouraged to allocate 10% to private equity.
In 2021, the Long Term Asset Fund structure was introduced to allow defined contribution schemes to invest in illiquid assets. Last year, performance fees were made exempt from the DC default charge cap of 0.75%, with private market managers typically charging performance fees.
The party has also said it would hold a global investment summit this year if it wins the election on 4 July, and that its industrial strategy would back successful industries across the UK.
“The summit to be held later this year [sic] to celebrate Britain’s economic successes and seek to attract investment in pioneering industries, including AI, life sciences, green energy and advanced manufacturing,” the party said.
