The Treasury has fired out a long press release on the launch of Reeves’ project to consolidate pension funds into megafunds for more domestic investment. The key points of which are:
The argument is that larger DC funds will invest more in UK equities. It is telling that Reeves has snuck a “reserve power” provision into her bill in order to allow Labour to specifically mandate investment in UK equities…
This threat of mandation is in line with Reeves’ parallel “Mansion House Accord” project – voluntary so far following briefings that legislation may be introduced to direct legislation. Labour is going further with these extra powers…
The industry is reacting badly:
Trustees have to fulfil their fiduciary duty. Not that Reeves minds…
Speaking to Sky News off the back of Rachel Reeves’ Air Passenger Duty hike, Ryanair chief executive Michael O’Leary said:
“Labour is dependent on those Red Wall seats, and yet every move she makes poisons economic growth and damages the UK’s recovery… it’s the Chancellor who stumbles from policy misstep to policy misstep… I think her policy decisions are incredibly stupid.”