Legal & General has announced a commitment to invest £2billion by 2030 to accelerate regional growth and regeneration across the UK.
The investment will be deployed into affordable housing, infrastructure and urban regeneration, helping to deliver around 10,000 new social and affordable homes as well as supporting the creation of around 24,000 jobs nationwide.
The investment programme will enable local and combined authorities to unlock their ambitions to drive local economic growth and respond to local needs, such as affordable housing, knowledge economy hubs, infrastructure, retrofitting homes and regeneration. Funds will be allocated based on local needs and demand, ensuring that every project supports L&G’s dual purpose of delivering both financial returns and positive societal outcomes.
The £2billion commitment will use investment from pension funds in conjunction with public funding to deliver housing and infrastructure projects at scale. The initiative also reflects L&G’s participation as a signatory to the Mansion House Accord, demonstrating how pension capital can be channelled through funds – such as L&G’s Private Markets Access Fund, which already totals over £2billion – into the UK to drive long-term economic growth.
Following on from this, L&G has announced it has joined the Sterling 20, a new partnership of Britain’s largest pension providers, which will work with the government and City of London Corporation to fund key infrastructure and fast-growing businesses in key sectors such as AI and FinTech. The group will leverage over £3trillion in assets to drive growth and prosperity in every region.
António Simões, group chief executive officer of L&G, said: “As a long-term investor in the UK economy, L&G has a proud history of using pension capital to develop assets that deliver strong financial returns and lasting social impact. Our £2billion commitment will help unlock the investment needed in productive assets across the country – creating jobs, strengthening communities and driving both regional and national growth.”
The chancellor of the exchequer, Rachel Reeves, added: “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.”
“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.”
Previous regional investments, delivered by L&G, to generate positive financial and societal outcomes include a £350million partnership with Newcastle City Council and Newcastle University, which helped transform the former Scottish and Newcastle Brewery site into the 24-acre Newcastle Helix. The scheme supported the development of homes, offices and research facilities, helping to attract STEM jobs to the area, saved around 13,000 tonnes of CO₂ and helped to accelerate innovation and economic growth in the North East.
In Cardiff’s City Square, a £1billion regeneration project, delivered by L&G in collaboration with Cardiff City Council, helped to create new transport links, offices and homes, helping to generate 13,000 additional jobs. The project added £1.1billion of gross value to the local economy, underscoring the effectiveness of place-based investment in local assets, delivered in partnership with the public sector, at delivering both financial returns and social impact.
