Europe, UK (Commonwealth Union) – Chancellor Rachel Reeves has urged a Canada style pension reform to drive UK investment to “take inspiration from the Canadian approach and invigorate the UK economy.” On making this statement she was set to host a roundtable in Toronto with the ‘Maple 8’ group of Canadian retirement funds, who have recently invested billions in the UK.
Reeves will encourage these funds to keep supporting Britain and learn from the Canadian experience on how consolidating pension schemes into larger funds can enhance investments in essential infrastructure and high-growth enterprises.
This meeting is part of a broader effort related to the significant review of pension fund investments announced last month, aimed at increasing investment in the UK and delivering elevated returns for pension funds.
Additionally, the Chancellor’s agenda includes fostering growth in the financial services sector. Rachel Reeves will outline her plans in her upcoming Mansion House speech, detailing how she will collaborate with industry and regulators to support growth. This will involve ensuring stability for the sector, facilitating investments across the UK, and implementing reforms to keep pace with new innovations and technologies.
Chancellor of the Exchequer Rachel Reeves says “The size of Canadian pension schemes means they can invest far more in productive assets like vital infrastructure than ours do.”
The announcement of the pension fund investment review has been met with strong approval from the industry, with positive remarks from organizations like Legal & General, the BVCA, Aviva, Barclays, and Phoenix.
New investment vehicles have been introduced to direct pension fund capital into infrastructure projects and the UK’s rapidly expanding companies. Recently, Phoenix and Schroders unveiled their Future Growth Capital co-investment fund, which aims to invest up to £20 billion in the UK over the next decade.
Increasing pension fund investments will stimulate demand and is accompanied by efforts to boost supply, including reforming the planning system, establishing a National Wealth Fund, and implementing the most significant changes to UK stock exchange listing rules.
A public employee retirement has also been a focus in recent years with explorations for financial security.
