The government has set out major spending plans that pension schemes hope could set the ball rolling for increased domestic investment opportunities.
In the Spending Review, presented to parliament today (11 June), chancellor Rachel Reeves announced an expansion of the British Business Bank’s financial capacity to £25.6bn.
“With additional capital, and greater flexibilities from a set of strategic reforms, the British Business Bank will be able to continue flagship programmes, such as Start-Up Loans and the Nations and Regions Investments Fund,” the Spending Review document stated.
“Today’s Spending Review represents a statement of intent that is welcomed by the pension fund trustees who, on behalf of millions of UK savers, will weigh up the opportunities this additional public investment presents.”
Zoe Alexander, PLSA
The Spending Review also included a planned £39bn for social housing and more than £15bn for regional transport infrastructure.
Zoe Alexander, director of policy and advocacy at the Pensions and Lifetime Savings (PLSA), said: “It is positive the government is taking forward crucial investment in the economy – in infrastructure, in housing, in defence, in energy and in health – and increasing the investment capability of the British Business Bank.
“Pension funds have recently committed to invest more in productive assets in the UK. In return, the PLSA has asked the government to play an increased role in creating a pipeline of investment opportunities for pension funds to support UK growth.
“Today’s Spending Review represents a statement of intent that is welcomed by the pension fund trustees who, on behalf of millions of UK savers, will weigh up the opportunities this additional public investment presents.”
Michael Moore, chief executive officer at the British Private Equity and Venture Capital Assocation, added: “As we have long argued, if we are to raise investment in our fast-growing businesses the British Business Bank needs additional scale and a broader remit to help build the UK’s growth equity and venture capital ecosystem.
“The UK is a powerhouse of private capital investment in part because of our world-leading research and development, so real terms increases in spending on this vital area, including UKRI and Horizon, is a big step.”
