Top Australian firms pledge £28.5bn injection into UK economy
A group of top Australian firms have committed to inject £28.5bn into the UK economy today across projects spanning renewable energy, infrastructure and urban regeneration.
Nine firms down under, including financial services giant Macquarie group and Australia’s biggest pension provider AustralianSuper, have committed to funding a range of schemes follwing an investment summit with the prime minister last night.
The £28.5bn announced by the government today spans both previously announced and newly committed capital, which ministers claim will create thousands of jobs and spur a “green industrial revolution.”
“I’m proud that some of Australia’s leading businesses have chosen to invest in the UK, recognising opportunities across the globe in our dynamic and forward-looking economy,” prime minister Boris Johnson said in a statement.
“The fantastic schemes announced today will turbocharge the Government’s efforts to create jobs and growth in every part of the country, and put the UK at the cutting edge of the green industrial revolution.”
Macquarie Group has committed £12bn capital by 2030 to infrastructure projects across the UK, including in offshore wind in Lincolnshire and north Scotland, gigabit broadband in rural England and hydrogen hubs in Southampton and Orkney.
The financial Group has supported more than £50bn of investment in the UK in the last 15 years, backing half of the country’s existing offshore wind capacity.
Property group Lendlease meanwhile has agreed to pump more than £5.5bn into regeneration projects in London and Birmingham.
IFM Investors, which has committed to delivering £3bn in investment into the UK over the next five years, said that his firm and other foreign pension funds would commit more capital if the government was willing to shoulder a higher level of the risk and offer more control in equity for long term support.
“The key is bringing this to the private sector in a way that is acceptable and creates a good opportunity for our pension funds members,” he said.
“There is no point in handing over an equity cheque if you don’t have influence on things like construction.”