Macquarie set to pump $39bn into Britain as Labour woos investors

Australian infrastructure giant Macquarie plans to back energy, waste, transport and water sectors in the UK. But its toxic history with Thames Water could be divisive.

Australian infrastructure giant Macquarie has been blamed for the crisis at Thames Water. Picture: Leon Neal/Getty Images

The Australian infrastructure giant blamed for the crisis at Thames Water is planning £20bn ($39bn) of fresh investment in the UK as the new Labour government tries to woo international investors to power economic growth.

Macquarie plans to inject the sum over the next five years into the UK’s energy, waste, transport and water sectors, as well as funding the construction of new data centres.

The investments will include the country’s biggest solar farm and hundreds of new electric vehicle fast-charging points.

The announcement will come as a relief to prime minister Sir Keir Starmer and chancellor Rachel Reeves as their flagship investment summit this week was at risk of being overshadowed by reports that a major Dubai investor could pull out amid an extraordinary row.

Last Wednesday, transport secretary Louise Haigh was said to have infuriated DP World by attacking its subsidiary P&O Ferries as a “rogue operator” for firing 800 British workers and replacing them with cheaper agency staff in 2022.

Reports then surfaced that DP World would not attend the International Investment Summit, and that it would also shelve a £1 billion investment in its London Gateway port. However, DP World confirmed on Saturday that after “positive and constructive’ discussions with the government it would be attending the summit after all.

Macquarie will announce its £20 billion of investments at the summit, where its chief executive, Shemara Wikramanayake, will join Jonathan Brearley, the boss of energy regulator Ofgem, National Grid chair Paula Rosput Reynolds and Octopus Energy founder Greg Jackson on a panel discussing decarbonisation of the energy sector.

Macquarie is planning to invest $39bn in the UK over 5 years.

Macquarie’s announcement may prove divisive given its controversial ownership of Thames Water, Britain’s biggest water company, which is scrambling to avoid bankruptcy after being overwhelmed by its debts.

In 2006, Macquarie bought a 48 per cent stake in the business before selling out entirely in 2017. During its time as a shareholder, it extracted £879m in dividends and the water company’s debt burden increased from £6bn to £11bn.

However, investment per Thames Water customer was 2.5 times the levels seen when the company was under public ownership and 1.5 times that of previous private sector owners, Macquarie said.

Martin Bradley, European and Middle East head of infrastructure at Macquarie Asset Management, conceded: “It’s not lost on me … For a long time, we have used the words ‘no comment’. We don’t always tell our story as cleanly (or) succinctly as maybe we could.”

Macquarie has invested £60bn in the UK since 1999, with about 35,000 people employed across assets that it owns.

It is planning to spend £220m on 650 EV fast-charging points at sites run by the motorway services operator Roadchef, which the Australian firm owns.

Roadchef boss Mark Fox said the investment would ensure it has more than enough supply until 2030.

Macquarie’s investments also include the Cottam solar farm on either side of the Lincolnshire and Nottinghamshire border, which will generate enough electricity to power 180,000 homes. Energy secretary Ed Miliband gave the 1133ha project the go-ahead last month.

“Across the UK, we are spade in hand, digging and developing,” Mr Bradley said.

The Sunday Times