Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she is taking steps to encourage pension funds to invest into (a) venture capital and (b) growth equity funds.

The Government published the Interim Report of the Pensions Investment Review alongside the Chancellor’s Mansion House Speech on 14 November 2024. The proposed reforms in the Interim Report could potentially unlock around £80 billion of productive investment, while boosting savers’ pension pots.

The Government will publish the Final Report in Spring 2025. This will further consider the opportunity for, and scope of, investment in the UK by pension funds.

The Government is also taking further proactive steps to increase investment in innovative businesses. Two UK pension funds, Aegon UK and NatWest Cushon, have agreed to collaborate with the British Business Bank on launching the British Growth Partnership to crowd-in institutional investment into venture capital funds and innovative businesses here in the UK.