Labour has said it would be willing to force pension funds to invest in a planned £50bn “future growth fund”.
Shadow chancellor Rachel Reeves said she did not believe Labour would need to mandate retirement schemes to invest in the new fund because of the goodwill in the sector, but added: “Nothing is off the table.”
Reeves has backed the proposal by Nicholas Lyons, lord mayor of the City of London, to create a £50bn growth fund, with 5% of every defined contribution scheme’s assets invested in it.
Reeves also backs chancellor Jeremy Hunt’s plan to reform EU-era Solvency II rules, intended to clear the way for funds to invest in infrastructure projects, but said: “They have been talking about it long enough – they need to do it.”
