Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to encourage UK pension funds to invest in domestic scale-up companies.

In May 2025, 17 of the largest workplace pension providers signed the Mansion House Accord and voluntarily committed to invest at least 10 per cent of their defined contribution default funds in private markets by 2030, with at least half of that invested in the UK. This is expected to unlock £25 billion of pension fund investment in the UK, including into high growth companies.

The British Business Bank has a key role in helping smaller businesses get the finance they need to start, scale and stay in the UK. The government has given the British Business Bank a new objective to mobilise institutional capital, including domestic pension capital. The BBB has already created one entry point through the British Growth Partnership. This is an investment vehicle designed specifically to encourage more UK pension fund and other institutional investment into the UK’s fastest growing, most innovative companies.