I have just skimmed the consultation published today by CLG about freeing up local authority pension funds to be able to invest in infrastructure projects. This is not a new story, but I have heard that CLG has recently had meetings with developers and local authorities to talk in particular about development sites which have stalled, at least in part, on account of the cost of up front infrastructure.
So the potential for what the consultation says is £22bn to be invested in infrastructure should be of some interest to the development industry. Of course the question to be put on the table is how best to secure the necessary return on the investment, so that the pension fund manager can rest easy, and development can proceed.
Caroline's recent post on the local planning authority as landowner, as well as planning authority has generated a lot of interest from readers. The possibility of local authority pension funds being used to forward fund infrastructure, perhaps in return for an equity stake, potentially introduces an additional dynamic.