The tie-up unveiled today between Lloyds Banking Group and its insurance arm, Scottish Widows, to funnel pensions money into public infrastructure lending, shows that a financing model already in place on the continent is beginning to catch on in the UK in a serious way.

Under the terms of the arrangement, which was reported this morning in The Times and confirmed by the bank, Lloyds has moved £800m of loans it has already made to UK social housing associations and universities across to Scottish Widows.