Legal & General launches £2 billion UK regeneration drive
FTSE 100 heavyweight Legal & General (L&G) has unveiled an ambitious £2 billion spending programme aimed at breathing new life into cities and towns across the United Kingdom. Between now and 2030, the insurer and investment manager plans to channel capital into “productive assets” – a term covering infrastructure, affordable housing and urban regeneration schemes – with the goal of creating approximately 24,000 jobs nationwide.
Investing in “productive assets”
Central to L&G’s strategy is a focus on projects that deliver both financial returns and social benefit. By targeting three key categories:
- Transport and infrastructure – funding roads, bridges, public transport hubs and digital connectivity.
- Affordable and social housing – constructing around 10,000 new homes reserved for lower-income renters or first-time buyers.
- Urban regeneration – revitalising brownfield sites, creating mixed-use neighbourhoods and improving public spaces.
the group hopes to unlock much-needed investment in communities that have seen long-term underfunding. Allocation of funds will be guided by local needs and demand, ensuring that cash flows to areas where it can have the most impact.
Creating tens of thousands of jobs
Legal & General’s £2 billion commitment is forecast to generate around 24,000 direct, indirect and induced roles. Using the National Housing Federation’s Local Economic Impact Calculator and RICS’s UK commercial real estate impact report, L&G anticipates that construction and regeneration activity will support positions ranging from on-site builders and engineers to supply chain workers and local service providers.
Group Chief Executive António Simões explained: “As a long-term investor in the UK economy, L&G has a proud history of using pension capital to develop assets that deliver strong financial returns and lasting social impact. Our £2 billion commitment will help unlock the investment needed in productive assets across the country – creating jobs, strengthening communities, and driving both regional and national growth.”
Prepping for the Regional Investment Summit
The announcement comes in the run-up to the inaugural Regional Investment Summit in Birmingham on 21 October. At this event, “Sterling 20” – an investor-led partnership comprising 20 of Britain’s largest pension providers and insurers – will convene to identify key infrastructure and housing projects in need of funding. The summit is designed to bring together government, local authorities and institutional investors to accelerate the delivery of large-scale schemes outside London and the South East.
Chancellor of the Exchequer Rachel Reeves said: “This is about getting Britain building again – bringing our savings, our investors and our regions together to deliver the homes, infrastructure and industries that will drive growth and create good jobs in every corner of the country. When pension funds invest in Britain, everyone benefits – from the construction worker on site, to the small business on the high street, to the saver seeing their pension grow.”
Track record of successful regional projects
L&G has already been active in multiple cities. Notable past and ongoing investments include:
- Newcastle Helix – a £50 million partnership with Newcastle City Council and Newcastle University to transform the former Scottish & Newcastle Brewery site into a 24-acre innovation district.
- City Square, Cardiff – a £1 billion mixed-use development in collaboration with Cardiff Council, creating offices, homes and transport links, and generating over 13,000 jobs.
- Regeneration schemes in Oxford, Glasgow, Salford and Sheffield – targeting underutilised land and dilapidated properties to boost local economies.
These proof-of-concept initiatives demonstrate L&G’s ability to marshal pension capital for large, complex projects that deliver measurable benefits for residents, businesses and local authorities.
Why pension funds matter
With more than £1 trillion in assets under management, the UK’s pension industry represents a major source of long-term capital. Barriers between institutional investors and regional projects have historically limited funding, but L&G’s move aims to showcase how pension portfolios can be deployed domestically to foster sustainable growth.
Industry bodies and government alike see this as a blueprint for future public–private partnerships, where private capital supplements public budgets to deliver infrastructure at scale without increasing national debt.
Looking ahead
As the Regional Investment Summit approaches, attention will turn to how the Sterling 20 consortium defines its investment criteria, risk-return profiles and governance framework. For local leaders, the key questions include:
- Which shovel-ready projects can absorb large-scale investment quickly?
- How will pension fund money be blended with public grants or subsidies?
- What transparency and reporting standards will be applied to ensure accountability?
With thousands of jobs and new homes on the line, the success of Legal & General’s £2 billion regeneration plan could set the tone for UK regional growth in the decade to come.