Andy Haldane, president of the British Chambers of Commerce, proposes linking over £50bn in pension tax relief to investments in UK businesses. This aims to address a funding gap for small- and medium-sized enterprises and introduce a "home bias" in retirement savings.
The UK government has retreated from plans to mandate pension funds to invest in UK assets after heavy opposition from providers. The Mansion House Accord, which saw 17 major providers voluntarily pledge 10% allocation to private markets, faced a proposed "backstop" power that would have made contributions enforceable. Following House of Lords resistance and provider warnings about fiduciary duty, the final legislation heavily dilutes these powers – they cannot be used before 2028 and will expire by 2032-2035, with a "saver's interest test" requiring regulator approval.
