Legal & General (L&G) has committed £2bn ($2.68bn) impact investment by 2030, which is targeted at housing, infrastructure, and urban regeneration projects across the UK.
The aim is to support the UK Government’s objective to encourage economic growth in different regions.
The company plans to allocate this investment to assets such as infrastructure projects, affordable housing developments, and urban regeneration schemes, retrofitting homes, and the development of knowledge economy hubs.
The intention is to aid in the delivery of around 10,000 new social and affordable homes and support the generation of about 24,000 jobs throughout the country. These jobs will include direct positions, related roles, and those created through increased economic activity.
Legal & General has a history of working with public sector organisations. Through this investment programme, the company will support local and combined authorities in pursuing their economic development plans.
Allocation of funds will take local needs and demand into account. Each project selected will aim to provide both financial returns and wider benefits to society, stated L&G.
The company said its commitment will see the use of pension fund investment along with public funding to deliver housing and infrastructure projects on a large scale.
UK Chancellor of the Exchequer Rachel Reeves said: “This is about getting Britain building again – bringing our savings, our investors and our regions together to deliver the homes, infrastructure and industries that will drive growth and create good jobs in every corner of the country.”
The announcement precedes the first Regional Investment Summit in Birmingham. At this event, a group called the Sterling 20, which is made up of 20 large UK pension providers and insurers, will meet to discuss funding for infrastructure projects around the country.
The group, working with the government, will use more than £3tn in assets to support growth in all regions. Reeves added: “Our country’s pension funds are some of the biggest in the world. When they invest in Britain, everyone benefits – from the construction worker on site, to the small business on the high street, to the saver seeing their pension grow. Sterling 20 shows what can be achieved when we all pull in the same direction to build a stronger economy that works for, and rewards, working people.”
