Home Business News Australian investors commit £28.5bn in major economic boost for UK

Australian investors commit £28.5bn in major economic boost for UK

by LLB Finance Reporter
31st Mar 22 9:20 am

Leading Australian businesses have announced major new investments totalling £28.5 billion in projects across the United Kingdom, as the Prime Minister hosted a UK-Australia investment roundtable at Downing Street on Wednesday evening.

Today’s announcements follow from the Global Investment Summit hosted by the PM in October and the creation of the new Office for Investment. They underline the growing appeal of the UK’s dynamic economy and workforce for foreign investment.

The strategic investments will create thousands of jobs initially with many more expected, supporting the Government’s agenda to level up across the UK, improve the quality of our infrastructure and housing and drive a green industrial revolution.

Prime Minister Boris Johnson said, “I’m proud that some of Australia’s leading businesses have chosen to invest in the UK, recognising opportunities across the globe in our dynamic and forward-looking economy.

“The fantastic schemes announced today will turbocharge the Government’s efforts to create jobs and growth in every part of the country, and put the UK at the cutting edge of the green industrial revolution. This is Global Britain in action – building new partnerships with friends and allies around the globe to create prosperity at home.”

New investments announced today include:

  • Top Australian financial services firm Macquarie Group plans to support £12bn of investment by 2030 in infrastructure projects across the UK, including in offshore wind in Lincolnshire and north Scotland, gigabit broadband in rural England and hydrogen hubs in Southampton and Orkney.  Macquarie Group has supported more than £50bn of investment in the UK in the last 15 years, backing half of the country’s existing offshore wind capacity.
  • Pension fund AustralianSuper forecasts a further £8bn in investments across the UK over the next five years. Among other projects, the funding will support a joint venture with British Land to develop their Canada Water master plan, estimated at £5bn in value on completion.
  • Real estate and investment group Lendlease and its partners plan to deliver £5.5bn of investment across its major regeneration projects in London and Birmingham over the next five years, subject to planning permission. This investment is expected to deliver thousands of new low carbon homes, training and employment opportunities for local communities
  • IFM Investors intend to deliver £3bn in investment into the UK over five years. The funding will help maintain existing assets, including the M6 toll and Manchester, Stansted and East Midlands airports, and its new net zero fund will support large-scale infrastructure energy transition projects – including in electrification, carbon capture and solar power
  • Energy, chemicals and natural resources experts Worley will expand their UK operations, supporting the energy transition and drive for NetZero creating over 1,000 highly-skilled professional jobs in the next 18 months in areas including Humberside, Manchester, Leeds, Glasgow and Aberdeen.
  • Global green renewable energy company Fortescue Future Industries (FFI) plans to create up to 1,000 new jobs at Williams Advanced Engineering in Oxford, which they acquired in March. The investment will support decarbonisation initiatives and build on the UK’s excellence in engineering.

The Prime Minister hosted ten Australian CEOs and senior executives for a hybrid roundtable at Downing Street this evening alongside the International Trade Secretary, to welcome today’s investments and discuss opportunities for further collaboration and investment.

The UK and Australia have close and historic economic, political and cultural ties, which are set to be bolstered by our new Free Trade Agreement.

Macquarie Group Managing Director and Chief Executive Officer, Shemara Wikramanayake, said, “The UK was our first destination when we expanded internationally in 1989, and has remained a strong focus for our investment activity ever since.

“The UK has been a world leader in the positive utilisation of private capital to meet essential infrastructure needs of communities, including as a global leader in investment in the energy transition. We look forward to building on our track record of investment of capital and expertise to deliver the next generation of UK infrastructure.”

The Department for International trade is boosting inward foreign investment – securing almost £10 billion in new investment at October’s Global Investment Summit and lining up a pipeline of future funding partnerships – and supporting UK businesses to grow their exports, including to new markets in the Asia-Pacific.

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