Bloomberg Talks UK Chancellor Rachel Reeves Talks UK Pension Investment
May 13, 2025
Rachel Reeves, the UK's Chancellor of the Exchequer, discusses her potential plan to mandate pension funds to invest in UK assets, aiming to boost the domestic economy. She emphasizes voluntary collaborations where major funds commit a portion to local investments, enhancing opportunities in infrastructure and private markets. Reeves also addresses the importance of creating favorable conditions for UK startups amid challenges from tax changes and emphasizes the pivotal role of skilled immigration in economic growth.
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Voluntary Pension Fund Investment Accord
- Pension savers want the best returns, which includes diversified portfolios investing in infrastructure and fast-growing businesses.
- Seventeen companies, covering 90% of active pension savers, voluntarily agreed to invest 10% in private assets, half in UK assets, benefiting the UK economy and savers.
Facilitate Cooperation Over Mandates
- The government can facilitate pension fund cooperation to invest more in UK assets without mandating them.
- Creating a unified voluntary approach helps send clear signals to markets, avoiding the need for compulsory mandates.
Infrastructure Plan Enables Investment
- Pension funds want to invest more in private assets but need a strong pipeline of projects.
- The government's 10-year infrastructure plan will provide investable projects such as crossings, airports, rail, and gigafactories.