- UK pension giants are collaborating to establish a £1 billion fund aimed at supporting British start-ups and innovators.
- Prime Minister Andy Burnham stated that this initiative sends a clear message of confidence in British business and talent.
- Pension funds including Nest, Railpen, and Border to Coast are set to back this government-led investment initiative.
- The fund aims to increase UK growth capital and provide pension savers with greater access to returns from successful UK companies.
- The initiative is part of a broader effort to reindustrialise Britain and create jobs for the future.
- Former Chancellors have previously engaged with pension funds to develop investments in private assets and UK-based equities.
- Industry leaders have criticized the lack of risk-taking in the UK, highlighting the need for more domestic investment.
UK pension giants are exploring the establishment of a new £1 billion Scale-up Fund to support high-growth British science and technology companies. This initiative, led by Andy Burnham's government, aims to channel investments from major pension schemes like Nest and Railpen into start-ups.12
The fund is designed to reindustrialise Britain and create jobs, reflecting a growing ambition among pension providers to invest in the next generation of British success stories. Burnham stated, “Today sends a clear message: this is a vote of confidence in British business, British talent and British ambition.”5
Chancellor John Healey emphasized the need for British capital to grow local companies, noting, “We create great companies in Britain but don’t do enough to grow them with British capital and keep profits in the UK.” The fund aims to increase UK growth capital and provide pension savers with greater access to returns from successful UK companies.4
Industry leaders, including Chris Rule from LPPI, highlighted the challenges faced by scaling businesses in accessing necessary capital. He remarked, “The UK is a global hub for innovation and entrepreneurship, but it’s clear that many scaling businesses struggle to access the capital they need to reach their full potential.” This initiative is seen as a crucial step in strengthening the UK’s capital formation ecosystem, as stated by Leandros Kalisperas of the British Business Bank.7
“The new fund aims to support high-growth British science and technology companies, helping them scale and create skilled jobs. Business Secretary Jonathan Reynolds emphasized the need for more promising businesses to start and succeed in the UK, highlighting the country's leadership in science and innovation.”
City AM
