Britain’s insurers set out plans on Monday on how to channel billions of pounds freed up from their safety buffers into infrastructure such as EV charging stations to boost growth.
The new Labour government in Britain has said that chunks of the cash needed to improve infrastructure and develop “green” technologies must come from the private sector given the country’s stretched finances.
The Association of British Insurers (ABI) said in a report for the finance ministry it proposes a new public-private model to “blend” investment from the private sector with public cash, such as from the government’s 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 previous Conservative government already eased capital rules for insurers as a key Brexit “dividend,” and the ABI has said this would free 100 billion pounds ($129 billion) for investment in infrastructure over 10 years.
The ABI said that from January its Investment Delivery Forum would begin reporting and tracking investments into productive assets made using money freed up from capital buffers.
Tulip Siddiq, Britain’s new financial services minister, said she looked forward to working with the forum to “take action to drive sustained economic growth in the UK.”
The government has announced a review of pensions to also help channel more private money into productive assets, building on the Mansion House Compact launched by the previous administration.
($1 = 0.7736 pounds)
(Reporting by Huw Jones; editing by Alexander Smith)
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