Britain’s government is working to find ways to get domestic pension funds to invest in new nuclear power, rail and broadband projects ahead of a mid-year budget statement next month, the Sunday Telegraph reported late on Saturday.
The newspaper cited a government source as saying the projects would offer funds a higher return than standard government bonds, and that Britain’s finance ministry would consider underwriting some of the initial risk of projects. “If you’ve got a long-term infrastructure need why wouldn’t we be looking to put sensible money into that,” the source was quoted as saying.
“Pension funds need to invest their money, they don’t want it sitting in cash or government bonds. If you can put it into something that can get them a decent return, that is far better,” the source said.