Some of the UK’s biggest investment, insurance, and pensions firms have today backed a new report calling on whoever forms the next government to use the first 100 days in office to deliver a series of reforms that can that trigger a major boost to investment in green projects.
The Partnership for Prosperity programme has been published by the Investment Delivery Forucm, which was formed last summer by the Association of British Insurers (ABI) bringing together the likes of Aviva, Phoenix, Royal London, and Lloyds Banking Group, among others.
The report argues the UK is facing an investment shortfall of £615bn through to 2030 if it is to meet requirements for energy, transport, and housing infrastructure. As such it calls on the next government to take “swift and decisive actions” to help the Forum deliver on its goal of channelling £100bn into ‘green and good’ projects over the next decade.
Specifically, it calls for Ministers to move in the first 100 days in office to empower the Office for Budget Responsibility and National Infrastructure Commission to evaluate the impact of public spending initiatives on job creation and long term revenue growth, designate new housing and onshore wind projects as Nationally Significant Infrastructure Projects (NSIP) that can be fast-tracked for planning approval, and host a Green Investment Summit.
In the longer term, the group argues the next government should commit to the wider use of loan guarantees and co-investment with the private sector to boost ‘green and good’ investment, revamping energy efficiency programmes and policies, introducing measures to ensure new homes are sustainable, accelerating clean energy infrastructure development, and boosting support for green skills programmes.
Baroness Nicky Morgan, chair of the Investment Delivery Forum, said: “At the core of this policy programme is an understanding that when government and the private sector work in partnership, the UK succeeds. We’re facing a significant investment shortfall and the recommendations offered in this programme provides a blueprint for all political parties on how we can work together to deliver green investment, achieve net zero, build new homes, and unlock growth that benefits every corner of the country.”
Hannah Gurga, director general of the Association of British Insurers, said the Investment Delivery Forum had made “significant strides in preparing the insurance and long-term savings sector to invest £100bn in productive assets over the next decade”.
“The recommendations in the Forum’s policy programme are a crucial next step in setting out how the government can support insurers to maximise the opportunities of Solvency UK now and into the future,” she added, referencing post-Brexit solvency reforms that are designed to allow insurers and pension firms to channel more investment into infrastructure projects.
The proposals are likely to be broadly welcomed by the Labour Opposition, which has promised to make sweeping planning reforms and a commitment to ‘crowd-in’ private sector investment to support new green infrastructure projects as central to its electoral pitch.
Yesterday, the Party announced plans to invest £1.8bn of public funds in upgrading ports to support the development of offshore wind farms. And today it is set to unveil plans to allow more development on so-called ‘Grey Belt’ land within the Green Belt, which critics claim provide few if any environmental benefits.
“Labour supports brownfield-first policies,” said Labour leader Keir Starmer. “But we must be honest, we cannot build the homes Britain needs without also releasing some land currently classed as green belt. We’ll prioritise ugly, disused grey belt land, and set tough new conditions for releasing that land.
“Our golden rules will also ensure any grey belt development delivers affordable homes, new infrastructure and improved green spaces.”
However, critics fear the proposals could enable urban sprawl that does start to eat into valuable farmland and habitats.
Conservative Party Chairman Richard Holden said: “Only Rishi Sunak and the Conservatives will respect local communities building the right homes in the right places which has delivered one million homes over this Parliament and sticking to the plan to reduce inflation and get mortgage rates down to help first-time buyers.”
All the main parties have promised to deliver planning reforms to help tackle barriers to housing and clean energy development. However, the government has faced fierce criticism from the renewables industry and housing sector for failing to fully lift the ‘de facto’ ban on new onshore wind farms in England and diluting proposed house-building targets.
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