UK infrastructural needs and Australian investment of £28.5 billion

Written by Kunal Sawhney, CEO, Kalkine

Britain’s infrastructure will get a big boost, with the leading Australian businesses committing an investment of around £28.5 billion ($37.5 billion) in projects across the United Kingdom. The development will boost the morale of the business community and will also establish the growing appeal of Britain’s vibrant economy and workers for foreign investment.

Some of the major investment decisions:

  • Macquarie Group, one of the leading Australian financial services firms, will support £12billion of investment in infrastructure projects across the UK by 2030.
  • The second biggest investment was announced by the Pension fund AustralianSuper forecasts, which will invest £8billion in the coming five years.
  • Lendlease, the real estate and investment group, and its partners, would inject £5.5billion of investment over the next five years.
  • £3billion has been pledged by the IFM Investors for new and existing projects in the coming five years. Furthermore, its new net-zero fund will help large-scale infrastructure energy transition projects.

Apart from the above, Worley and Fortescue Future Industries will create 1,000 high-skill jobs each and support the decarbonisation initiatives of the government.

The two nations are a natural ally

Australia and Britain are natural trading partners with a relationship based on a shared history and common values. The two nations share complementary trading economies with over A$815 billion in total two-way investment. The total goods and services traded between the two nations amounted to £14.5 billion in the year to June 2021.

In the ten-year period from 2010 to 2020, the total worth of UK foreign direct investment (FDI) in Australia more than doubled to £69.2 billion (A$123.5 billion).

A step further after A-UK FTA

Britain and Australia signed an Australia-UK Free Trade Agreement (the A-UK FTA) in December last year. The deal that represented the first new post-Brexit free trade agreement projects to eventually boost bilateral trade by over £10 billion each year. The deal provides greater access to a range of high-quality products made in both countries and is expected to allow greater mobility between the people of the two countries.

The deal outlined innovation and procurement and eliminated tariffs on all UK exports to Australia. It also vowed to remove and reduce regulatory barriers and bring widespread openings for UK businesses and consumers. As per the government assessment, the UK gross domestic product (GDP) could see an increase of nearly £2.3 billion in the long run with this deal. The UK holds broad competitiveness in business and financial services sectors, while Australian competitiveness is in agricultural products, and hence the deal is expected to bring long-term economic benefits for both nations.

Bottomline

Investment plays a major role in helping a nation grow industries, power productivity as well as create jobs. The UK to provide people with the quality and reliability of service that they expect needs substantial and enlarged investment in the infrastructure sector as a fully functional infrastructure is one of the most important pillars of a nation’s competitiveness.

The investment commitment by the top Australian businesses in the UK will definitely help the government’s efforts to create jobs and growth across the country. It will aid in improving the nation’s quality of infra and housing and push through a green industrial revolution.

About Lisa Baker, Editor 2424 Articles
Lisa Baker is the Editor of Always Finance, and writes about Business, Finance Technology and Healthcare. Lisa is also the owner of Need to See IT Publishing.