British insurers have outlined plans to channel billions of pounds freed from their safety buffers into infrastructure projects like EV charging stations to stimulate growth. The new Labour government has emphasised the necessity of private sector investment for improving infrastructure and developing green technologies due to the country’s financial constraints.
In a report for the finance ministry, the Association of British Insurers (ABI) proposed a new public-private model to blend private sector investment with public funds, such as those from the planned National Wealth Fund.
“In the case of the national EV charging network detailed in the report, it is estimated that less than 1 billion pounds of public investment spread over 15 years would support up to 20 billion pounds of private investment, driving economic growth,” the ABI said in a statement.
“It also demonstrates support for nuclear energy and plans for offshore wind investment,” the statement read. The previous Conservative government eased capital rules for insurers as a Brexit “dividend,” which the ABI says could free up £100 billion ($129 billion) for infrastructure investment over 10 years.
Starting in January, the ABI’s Investment Delivery Forum will report and track investments into productive assets made with money freed from capital buffers.
Tulip Siddiq, Britain’s new financial services minister, expressed her eagerness to collaborate with the forum to drive sustained economic growth in the UK. Additionally, the government has announced a review of pensions to further channel private money into productive assets, building on the Mansion House Compact initiated by the previous administration.
