INSURER Legal & General said on Tuesday it would allocate £1.5 billion to a new UK fund for infrastructure projects and seek external financing to expand its size to £15bn.

Chief Executive Nigel Wilson wants L&G, which manages over $1 trillion in British pension fund assets, to invest in Britain together with overseas sovereign wealth funds.

"We are well-positioned to work alongside UK and international money to channel funds into regeneration that delivers growth, homes and jobs," Wilson said in a statement.

The fund will seek British and international institutional investors for 30-50 projects across Britain, including in the English cities of Birmingham, Bristol and Leeds.

Ahead of elections in May, British politicians are championing spending on large-scale projects.

Finance minister George Osborne has made a string of visits to road construction sites and other projects, donning a hard hat as he seeks to show voters that Britain's economic recovery is gaining momentum. The opposition Labour Party says it would boost infrastructure spending if it is elected to power.

L&G said the fund would invest in debt and equity schemes and take on construction risk, the less secure aspect of infrastructure investment which offers the best returns.

Insurers and pension funds like infrastructure investment as it is high-yielding and matches their long-term liabilities in pension and savings schemes. But a lack of attractive schemes has pushed up prices.

The British government's Regeneration Investment Organisation will act as sponsor to help the deal pipeline, L&G said, adding that the fund was announced at a conference hosted on Tuesday by British Cities Minister Greg Clark.

Conference delegates included international sovereign wealth funds, an L&G spokesperson said.