Question to the HM Treasury:

To ask His Majesty's Government what is the potential of the Sterling 20 investment initiative to support infrastructure and high-growth sectors, and what role will the Treasury play in overseeing its deployment.

The Sterling 20 is a new grouping of institutional investors announced by the Chancellor at the inaugural Regional Investment Summit in Birmingham. Members of the group include signatories of July’s Mansion House Accord, as well as two insurers and the Pension Protection Fund. There will also be attendance from the Local Government Pension Scheme pools where appropriate.

The Mansion House Accord saw pension providers representing 90% of active defined contribution scheme savers commit to invest at least 5% of their main default funds in UK private markets by 2030. This commitment will unlock over £25 billion for the UK with investment including new housing, infrastructure and high-growth industries. Establishing the Sterling 20 also delivers on a specific government pledge to “curate a pipeline” of investment opportunities.

The grouping will further support mobilising institutional investment by raising awareness among investors of government-led programmes and initiatives. This will allow members to help shape and co-design investment opportunities, so they are attractive and relevant to their regulatory and fiduciary requirements. By promoting knowledge sharing, the Sterling 20 can help remove investment blockers and improve the investability of government-led projects.

The forum is industry-led and delivered in partnership with the City of London Corporation as well as the relevant leading trade associations. The Office for Investment act as the secretariat and are responsible for curating the programme for the group. His Majesty’s Treasury will take an oversight role through the Chancellor of the Exchequer and Minister for Investment, as well as cross-government investment governance structures, to hold the Office for Investment and contributing departments to account on delivery and ensure the success of the initiative.

More broadly, delivering the 10-Year Infrastructure Strategy’s ambitious programme for transforming the UK’s infrastructure will require significant increases in private investment to complement and maximise the value of the extensive public investment underway. The government will continue to work in partnership with the private sector to unlock capital for UK infrastructure, including through the Sterling 20.