Pension Funds: Use of UK-listed Investment Companies

Lord Carrington Excerpts

Tuesday 9th September 2025 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Baroness for her question and her broad support for the Government’s agenda. This is an area where, aside from the specific issue that she raises in her question, we are in agreement that we want to see greater investment in UK infrastructure in this way. I do not agree with the specific point about savers. The measures contained within the Bill will see far greater returns for savers. That is incredibly important and lies behind a lot of the measures that we are taking.

On the specific reserve power, obviously we are very encouraged by the Mansion House accord. It builds on the existing Mansion House compact, set up by the previous Chancellor in the previous Government. In the light of this progress, the pensions review concluded it was not necessary currently to mandate investment. Instead, the Bill includes a reserve power, which will, only if necessary, enable the Government to set quantitative baseline targets for pension schemes to invest in a broader range of assets, including in the UK, for the benefit of savers and for the benefit of the economy. The Government do not anticipate exercising the power unless they consider that the industry has not delivered the necessary change on its own.

[Lord Carrington (CB)]

My Lords, can the Minister clarify for me, and no doubt others, to what extent the independent trustees of pension funds, when giving a mandate to investment managers, are able to forbid that manager to invest in certain areas, whether it be private equity, defence shares or whatever?

[Lord Livermore (Lab)]

I am afraid I do not know the specific answer to the noble Lord’s question. I will happily write to him to clarify.

Agricultural and Business Property Reliefs: OBR Costing

Lord Carrington Excerpts

Monday 27th January 2025 Lords Chamber

[Lord Livermore (Lab)]

I am very grateful, as always, to the noble Baroness for her spirit of compromise. As I said in answer to the previous question, given the nil-rate bands, a couple can pass on up to £3 million between them to a direct descendant inheritance tax-free.

[Lord Carrington (CB)]

My Lords, growth, a government priority, requires investment. What assessment have the Government made of the effect of reducing the reliefs on investment in farming?

[Lord Livermore (Lab)]

The Government set out their modelling at the Budget and, more recently, the Chancellor provided very extensive additional details to the Treasury Select Committee on exactly that point, including in her follow-up letter. That modelling was backed up by the OBR, as shown in the publication last week.