Around 49 per cent of local government leaders think that local government pension funds should have formal representation on the UK Infrastructure Bank (UKIB) board, according to research from GLIL Infrastructure.

The survey also found that 47 per cent think local government pension funds should encourage or lobby the bank to support the financing of regional and local infrastructure projects and advise it on the investment that would have the most impact in their area.

In addition to this, a further 43 per cent said that local government pension funds should have a formal representative that is consulted at key stages of development.

The survey also considered what local government leaders believed should be the priority for the UKIB, with 55 per cent highlighting coordinating and financing national infrastructure as the top priority.

Alongside this, 47 per cent suggested that the top priority for UKIB should be driving regional and local economic growth, while 41 per cent said it should support tackling climate change.

More broadly, local government leaders identified housing as one of the most urgent infrastructure requirements, with 69 per cent raising this sector ahead of transport and renewable energy.

In particular, it found that more than a third (37 per cent) of local government leaders would prioritise residential housing, while 29 per cent would look to affordable housing and 22 per cent said social housing.

In addition to this, a combined total of 55 per cent of respondents suggested that airports, rail and road infrastructure should be a priority, while less than a quarter (22 per cent) said renewable energy.

Commenting on the findings, GLIL Infrastructure COO, Ted Frith, said: “Housing is a clear priority for many local government leaders given the dramatic and well-documented shortage across the UK, however respondents point to a broad scope of local infrastructure needs.

“The UK’s recovery from Covid-19 is at a critical juncture. Policymakers at every level of government are considering how our infrastructure must evolve after a period of significant disruption.

“It’s why we are investing in established infrastructure companies and new enterprises that will underpin the UK’s shift to a more sustainable economy.”

Frith also noted that the government is pushing infrastructure as part of its call for an investment ‘big bang’ to support the UK’s recovery from Covid-19.

However, whilst Frith said that the drive on the issue is welcome, he clarified that the availability of capital and a lack of willing investors to deploy it are not the issues holding infrastructure investment back.

He explained: "Institutional investors want to invest in infrastructure. A more effective deployment mechanism should be the government’s primary focus.

“The UKIB could be the government’s mechanism to identify the most pressing and viable infrastructure projects in need of funding across the UK.

“If it plays this role successfully, it could spark a surge in infrastructure investment that that will help to regenerate our economy, support the needs of communities and facilitate the country’s transition to net zero carbon emissions.”

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