Politics
Chancellor Reeves Eyes Canadian-Style Overhaul to Boost UK Investments with £360bn Pension Pot
Chancellor considers adopting Canadian pension model to boost UK investment
Rachel Reeves expressed her desire to draw insights from Canada’s approach to enhance the British economy. This follows her initiation of a pensions sector review last month.
Wednesday, August 7, 2024, 2:
The chancellor has indicated that she is evaluating proposals to merge local government pension plans and allocate a portion of their £360 billion in assets towards economic investment.
Rachel Reeves expressed her enthusiasm for adopting a model similar to that of Canada, where pension funds play a significant role in funding infrastructure projects to stimulate economic expansion.
Following a Sky News report, it has been disclosed that the Chancellor is scheduled to meet with several Canadian pension funds in Toronto as part of a three-day visit to North America this week.
At present, the pension system for local government employees in England and Wales is divided among 86 separate funds, collectively serving approximately six million members.
Ms. Reeves stated, "The substantial scale of Canadian pension plans allows them to allocate significantly more resources to essential assets such as crucial infrastructure compared to ours."
"I am advocating for British programs to adopt strategies from the Canadian model to stimulate the UK economy. This approach could provide enhanced benefits for savers and release billions of pounds for investment."
"Initiatives are starting to unveil their investment strategies, which reflects their trust in our efforts to repair the core economic structures, reconstruct Britain, and enhance prosperity across all regions of the nation."
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Ms. Reeves recently initiated an examination of the pensions industry, emphasizing that stimulating economic expansion was a principal theme in the King's Speech.
The finance minister is anticipated to provide more information about her retirement strategy during her inaugural speech at Mansion House.
Investment companies such as Legal & General, Aviva, and Phoenix have expressed their approval for the sector review that began in July.
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