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The government is looking Down Under to bankroll major infrastructure projects, as it aims to raise £99bn in Australian pension investment the next decade.
Investment minister Lord Stockwood is touring Australia, Malaysia and Singapore this week as he positions the UK as the most “trusted, stable and connected” destination for funds in the region.
The government is hoping to open the door to Australian pension funds to invest in UK projects in clean energy, infrastructure, housing and innovation.
The department for business and trade has set up a so-called “Supers Unit” to streamline investment from Australian pensions into these projects.
Stockwood tours Australia
Australian pension funds already hold around £41bn in UK investments, and the government says this new unit will “turbocharge” investment to reach around £99bn by 2035.
Lord Stockwood’s tour will see the investment minister attempt to drum up more funding for UK projects from Malaysia, where developers have already committed more than £14bn into housing and regeneration projects in Battersea and Brabazon in Bristol.
The investment minister will also visit Singapore, where around £340m of portfolio investment was held in the UK as of the end of 2024.
The drive for pension fund backing comes as part of the government’s modern industrial strategy, which it says has already secured £360bn of private investment and supported up to 120,000 jobs.
Minister hails Australian trade ties
Lord Stockwood said: “The UK is a thriving business hub, and our Supers Unit will pave the way for vital investment into key UK projects, helping to deliver long term economic growth while boosting our already strong trade relationship with Australia.
“In an unstable world, our Modern Industrial Strategy is providing international businesses the stability they need to invest in Britain not just for the next year, but for the next 10 years and beyond.”
David Whiteley, head of global external relations at Australian investment advisor IFM Investors, said: “Australian superannuation funds are some of the fastest growing in the world, the Supers Unit will accelerate investment into nationally significant projects that deliver for the UK and the retirement savings of millions of working people.”
Last month, Chancellor Rachel Reeves signed an agreement of understanding with her Australian counterpart.
Bilateral trade between the UK and Australia has grown by 22 per cent to £24bn since the two governments’ trade agreement came into force, according to government figures.