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New research: A Blueprint for Growth
Over 189 years, L&G has seen first-hand that long-term capital directed into productive assets can help to drive sustainable growth, innovation and economic resilience.
Today, more than ever, we believe there is an expanding opportunity for investment that is in the best interests of pension schemes, their members and society as a whole. The key challenge is how to achieve this.
L&G commissioned research, produced by Oxford Economics, shows that a suite of six policy changes has the potential to deliver up to £220 billion in UK investment over the next decade, permanently adding 0.7% to GDP by 2035.
The modelling shows these policy changes could generate £8.8 billion in additional government revenues and raise household disposable incomes by an average of £330 (2024 prices) by 2035. This uplift builds gradually over time as the measures take effect, reflecting the long-term benefits of mobilising pensions and insurance capital into productive assets.
At the heart of this opportunity is productive finance: long-term capital directed into assets that seek to drive sustainable growth, innovation and economic resilience. From housing and clean energy to digital infrastructure, productive finance not only aims to support economic expansion but also broader societal benefits, while targeting compelling risk-adjusted returns.
L&G has published A Blueprint for Growth, which underlines the critical and growing importance of long-term institutional investors in directing capital into assets that seek to drive sustainable growth. 
The pension and insurance sector already plays a key role in driving investment in the UK economy, with UK pension assets estimated at £3.2 trillion in 2024. However, with the right policy framework, investors can seize the opportunity, acting in the best interest of members by seeking greater returns through access to more high-quality transactions and leveraging scale.
Download our ‘A Blueprint for Growth’ research
Key risks
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, and the investor may get back less than the original amount invested. Assumptions, opinions, and estimates are provided for illustrative purposes only. There is no guarantee that any forecasts made will come to pass.
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