Business secretary tells pension funds to invest in UK or face legal mandate
11 reported
Business secretary Peter Kyle has told UK pension funds to invest more in British companies or be forced to do so by law, according to a Guardian report. Speaking at an event at Lloyds Banking Group’s headquarters in London, Kyle expressed frustration that government reforms have not led to sufficient investment. He said he was “fed up” with being asked by the City to tweak regulations, only to see a lack of investment follow. Kyle stated that asset managers “should feel a patriotic duty in making Britain a success” and need to “get off their high horses.” He said he would use legal mandate if necessary, though he does not consider it ideal. The comments come as Labour transitions from Keir Starmer to Andy Burnham, who is expected to become prime minister by 20 July. Kyle pledged the government’s industrial strategy would continue under Burnham and said he wants to keep his job to ensure stability.
What’s reported
Business secretary Peter Kyle told UK pension funds to invest in Britain or be forced to do so by law.
Kyle spoke to the Guardian on the sidelines of an event at Lloyds Banking Group’s headquarters in London.
He said he was “fed up” with being asked by the City to tweak regulations, only to see a lack of investment follow government reforms.
Kyle stated asset managers “should feel a patriotic duty in making Britain a success” and need to “get off their high horses.”
He said: “I don’t think mandation is ideal in any circumstances. But I’ll use it if I have to, because I’m in a rush.”
Chancellor Rachel Reeves last year agreed a “Mansion House accord” with 17 of the UK’s largest pension funds to release up to £50bn of investments, with at least half for British assets.
Reeves earlier this year won powers to mandate investment in UK assets, but the bill was watered down after City lobbying and Tory opposition; the powers cannot be used before 2028 and expire by 2032 if unused, or by 2035 if used.
Andy Haldane, president of the British Chambers of Commerce, recently suggested pension tax relief worth over £50bn should be offered only to savers who invest in Britain.
Kyle’s comments come as Labour transitions from Keir Starmer to Andy Burnham, expected to become prime minister by 20 July.
Kyle said he wants to stay in his job and has held it for 10 months.
In a speech, Kyle said Britain needed “Manchesterism” – Burnham’s plan for more devolution and state involvement – to boost the economy outside London and the south-east.
Key figures
Peter Kyle, business secretary
Rachel Reeves, chancellor
Jeremy Hunt, former Conservative chancellor
Andy Haldane, president of the British Chambers of Commerce, former Bank of England chief economist
Keir Starmer, outgoing Labour leader
Andy Burnham, expected to become prime minister by 20 July
Sources: The Guardian
