Chancellor set to unveil sweeping reforms to encourage pension funds to ‘buy British’ and ‘fire up’ economy

Rachel Reeves set to unveil sweeping reforms to encourage pension funds to ‘buy British’ and ‘fire up’ the economy.

The Chancellor will use her keynote Mansion House speech this week to say lessons must be learnt from Canadian retirement schemes, who have been big investors in British business.

She wants the UK’s Local Government Pension Scheme, which controls £350 billion of assets, to invest more in local projects, such as infrastructure and renewable energy.

But this could put her on a collision course with funds that manage the nest eggs of six million council workers past and present.

She has been warned she faces a backlash if the scheme is told to invest in certain sectors.

Trustees fear that being told to buy more UK assets may not deliver the best returns for their members.

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