RACHEL Reeves should work closer with business to fund infrastructure projects rather than stretch public finances, a pensions firm boss has said.

Andy Briggs, boss of FTSE 100 Phoenix Group, said there were tens of billions of pounds of private money ready to invest in the housebuilding drive and green energy push.

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But he warned the Chancellor that there needed to be a clearer defined roadmap of projects to invest in.

Labour’s growth mission has set out targets for infrastructure projects including building 1.5 million homes, a third Heathrow runway, tripling the number of wind turbines and constructing nine reservoirs.

Ms Reeves ramped up public spending in the Budget to an average of £70billion a year, the biggest rise in spending for a quarter of a century to try and fund growth.

However, growth forecasts have been cut and firms have argued the extra tax-hikes stymie their growth.

Sir Rupert Soames, chairman of the CBI, will call on the ­Government today to help get the “flywheel of the economy turning” with concrete strategies and policies.

Yesterday, it emerged the Office for Budget Responsibility has warned Ms Reeves she will be forced to make spending cuts because lower economic growth will wipe out her fiscal headroom.

Meanwhile, firms such as Phoenix have voiced concern higher public spending leads to higher interest rates — which is ultimately damaging to economic prospects and their own valuations.

If global investors are nervous about the health of UK finances it will also make it harder to attract their cash.

Mr Briggs, part of the British Investment Taskforce, said ­Phoenix is “engaging with the Government and have been clear that we are keen to invest and a pipeline of investable assets is important”.

He added more needs to be done to smooth the path for private ­investors.

It is thought they could secure contracts with the Government that allows steady annual returns on their investment, rather than full government funding.

This would likely be done through the new National Wealth Fund, which could underwrite the process.

He said: “The Government is working with the private sector and building clear lines of communication with the regulators to create the appropriate funding structures for pension providers, and to help build the Britain of tomorrow.”

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Burb’s coats of arms

BURBERRY is pinning revival hopes on typical wet British weather and star power to promote its new heritage trench coats.

The troubled fashion brand has called on a cast of famous British faces, including model Naomi Campbell, Sex Education star Aimee Lou Wood and Top Boy actor Micheal Ward, for the campaign, called: “It’s always Burberry weather.”

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Burberry boss Joshua Schulman signalled last month the firm would put trench coats front and centre again, and water down its attempts to flog £2,000 handbags.

Heineken revived by cider

DRINKERS have got the thirst for cider again, with Heineken toasting a 40 per cent rise in sales of its Inch’s brand.

The brewing giant yesterday announced an eight per cent increase in profits to £2.9billion while revealing it sold 1.6 per cent more beers around the world in 2024.

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Heineken said the success of its Inch’s and Old Mout brands was down to more younger drinkers choosing cider.

The firm has also ploughed money into advertising and believes a revival is under way after the cider boom created by Magners and Bulmers 20 years ago went flat.

Heineken has also benefitted from the success of its Spanish lager brand Cruzcampo, which it said had been its most successful launch in the past decade.

It claims its Birra Moretti also became its most popular beer in the UK in the past year, as more drinkers choose European-style lagers.

Thames Water is probed

WATER regulator Ofwat has launched a fresh investigation into Thames Water over concerns it will not complete more than 100 environmental schemes funded by customers.

The regulator said it will probe whether the delays mean England’s largest water firm has breached its licence.

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It comes amid concerns Thames Water had been using millions of pounds it had pledged for clean-up projects, such as upgrading sewage systems, on staff bonuses and dividends for investors.

Thames Water is currently weighing up rescue bids while its bondholders battle it out in court over a refinancing that could stave off state-backed special administration.

Ofwat’s Lynn Parker said: “We take any indication that water firms are not meeting their legal obligations very seriously.”

A Thames Water spokesman said: “Customers will not pay twice for investment already funded through their bills.”