UK Pension Funds to Invest £50bn in British Assets Under New Growth Pact

Chancellor Rachel Reeves is sealing a record £50 billion pact with big pension schemes to put their members' money into British growth and infrastructure projects. The new Mansion House Compact—a non-statutory code backed by firms including Aviva and Legal & General—will see 10% of pension assets flow into unlisted assets by 2030, with half (£50bn) being set aside for UK schemes.

 

The agreement follows tense negotiations, weighing up government demands for local investment against industry concerns over fiduciary duties. The Treasury has committed to accelerating the pipeline of "investable opportunities," including green energy and transport projects, to attract pension funds.

 

Furthermore, the government will consolidate fragmented pension schemes into "megafunds" of £25–50bn so as to enable larger, inexpensive investments, like in Canada and Australia. Also, reform of cash ISAs and regulations on workplace pensions will probably be discussed in Reeves' July Mansion House speech

 

Source: The Telegraph, GB News, HM Treasury