The government risks a clash with the pensions industry after Rachel Reeves refused to rule out forcing workplace retirement schemes to boost their investments in the UK.
The tensions came just hours after 17 of Britain’s biggest workplace pensions providers made a pledge to the government to lift their investments in riskier but potentially higher returning private markets by as much as £50 billion by 2030, with half of this — an estimated £25 billion — to be directed into UK assets.
While this industry commitment is voluntary, it followed months of wrangling with the Treasury, which is under pressure to bolster economic growth.
The chancellor is also leaving the door open to forcing, or mandating, retirement schemes to invest in certain assets if
