UK growth boosted as state fund ups pension investment

Wednesday 07th February 2024 05:28 EST

A new state fund, the "Growth Fund," is set to be launched within the next 18 months, investing hundreds of millions of pounds from pension fund assets into British growth companies.

The British Business Bank, the government's economic development agency, anticipates that the Growth Fund could deploy approximately £600 million annually from pension savings into fast-growing companies. This initiative is part of efforts, including the chancellor's Mansion House reforms, to encourage British institutions to allocate more funds to productive investments in the UK.

The fund is expected to pool pension fund money to invest alongside existing and new programs run by the British Business Bank. Additionally, the agency is encouraging proposals from pension funds to establish new private sector investment vehicles, with potential government co-investment.

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