Rachel Reeves has told City chiefs she plans to create pension “megafunds” that will “power growth” in the economy and reward British savers. In her first Mansion House speech as Chancellor, Reeves announced plans for the megafunds which she said could bring in £80 billion to invest in businesses and infrastructure. Report by Covellm. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
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00:00We are publishing the interim report of the Pensions Investment Review.
00:04It sets out our plans to create Canadian and Australian-style mega-funds to power growth
00:10in our economy, and start the most significant set of changes to the pensions landscape since
00:16the Turner Review, underpinned by a clear commitment to legislate for these changes
00:22for the first time in the Pensions Scheme Bill next year.
00:26We will deliver a significant consolidation of the defined contribution market to enable
00:31schemes to deliver better, safer outcomes, while investing to support growth.
00:37And we will legislate on measures to consolidate the Local Government Pension Scheme, one of
00:42the largest pension schemes in the world, and require that the 86 Local Government Pension
00:47Scheme administering authorities consolidate all of their assets into eight pools.
00:54These reforms will deliver real change in our economy.
00:58Through consolidation of the DC market and the Local Government Pension Scheme into mega-funds,
01:04previous domestic and international experience suggests that we could unlock around £80
01:10billion for investment in private equity, including exciting growth businesses, and
01:17in vital infrastructure projects, including transport, energy and housing projects, here
01:23in the UK.
01:24I look forward to working closely with President-elect Trump and his team to strengthen our relationship
01:31in the years ahead.
01:33And of course, our biggest trading partner is the European Union.
01:39We will not be reversing Brexit or re-entering the Single Market or Customs Union.
01:45But we must reset our relationship.