UK Eyes Infrastructure Growth
There is no doubt that economies across the world are lingering under the danger of recession, and UK is no exception. It has been told that there looking at the current scenario of the UK economy, Chancellor George Osborne would be making plan to rope in the support of pension funds this time. This would be done to ensure that infrastructure can be given the much desired boost.
Even there are plans revealed on Sunday to underwrite 20 billion pounds of loans so that small companies can be given financial support. With forecasts indicating that there could be not more than 1.7% growth in March, it seems that tough time is ahead of the country. Even Treasury Minister Danny Alexander made it clear that the government would be injecting 5 billion pounds in capital projects by 2015.
"Through working with British pension funds, we're identifying ways to unlock around 20 billion pounds of pension fund investment to go into privately funded infrastructureâ€ť, said Alexander. There has been an agreement signed for the same between the government with the National Association of Pension Funds and the Pension Protection Fund.
It has also been told by the head of China's sovereign wealth fund that they would be investing funds to support the dithering condition of infrastructure of Western countries, with main focus on Britain.
Itâ€™s being expected that the Chancellor George Osborne would propose the plan tomorrow, along with the National Infrastructure Plan. So far, pension funds have not contributed much in infrastructure growth so this is the time when pension funds are being considered.
There are some close sources that said that there are significant chances that more classrooms would be build in inner cities to meet the rising demands in April. There are high expectations that this time pension funds would be able to give the desired support to the UK economy in the time to come.