A.30 Pension fund investment - The Government has signed a Memorandum of Understanding with two groups of UK pension funds (including the National Association of Pension Funds, the Pension Protection Fund, and a separate group representing pension plans and infrastructure fund managers) to support additional investment in UK infrastructure. The Government will target up to £20 billion of investment from these initiatives.
A.31 Insurers' Infrastructure Investment Forum - The Government will set up an Insurers' Infrastructure Investment Forum with the Association of British Insurers to explore ways to ensure that the capital markets continue to provide an efficient and attractive source of debt finance for infrastructure projects. This will include addressing the impact of potential regulatory changes in the insurance sector.
A.32 Growing Places fund - As announced on 18 September 2011, the Government has established a £500 million 'Growing Places' fund to unblock stalled local infrastructure projects and stimulate further private sector investment. Local areas are already making decisions on how to use their allocation, including a £7 million grant to Sheffield City Region to create a JESSICA fund, leveraging £13 million match funding from the EU.7 (k)
A.33 Local authority investment - The Government will consider allowing city mayors and partner local authorities to borrow against the income they receive through the CIL as part of its commitment to deliver tax increment financing (TIF) powers, where they can make a significant contribution to national infrastructure priorities. Further details on using business rates for TIF will be set out in the Local Government Resource Review in December 2011.
A.34 Government guarantee - The Government will, subject to affordability, consider using transparent forms of guarantee to support specific projects where this provides best value for money for taxpayers and users, recognising that the private sector cannot always bear every risk in major new projects.
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7 Joint European Support for Sustainable Investment in City Areas.