Under the new Mansion House Accord, 17 of the UK’s largest pension providers, managing around 90% of workplace pensions, will commit to investing up to £50 billion into UK businesses and infrastructure projects by 2030. At least £25 billion of that will be invested directly in the UK, with a strong focus on clean energy, innovation, and high-growth sectors.
During a House of Commons exchange with Pensions Minister Torsten Bell, Gregor Poynton MP highlighted the urgent need for scale-up capital to help fast-growing firms in his Livingston constituency break through long-standing barriers to growth.
“Innovation is one of Britain’s great strengths,” Mr Poynton said in Parliament, “with fast-growing firms contributing over £1 trillion to the UK economy and supporting 3.2 million jobs. Yet many of those firms, including some right here in Livingston, face persistent barriers to scaling up, particularly around accessing long-term finance.”
In response, the Minister confirmed that the Mansion House Accord would support greater pension fund investment in private markets, including venture capital, and said the Government would continue to back scale-ups through initiatives like the British Growth Fund, recently approved by the Financial Conduct Authority.
The new commitments build on the 2023 Mansion House Compact but go significantly further, doubling the target for defined contribution pension investment in productive assets from 5% to 10%, and crucially, ringfencing at least 5% for investment directly into the UK economy.
The final report of the Pensions Investment Review, due soon, will go further still , proposing the creation of large, consolidated “megafunds” to boost returns for savers while accelerating UK growth.
Commenting, Mr Poynton said: “This is a smart, long-term move that puts British pension savings to work supporting British jobs and businesses. For innovative companies in Livingston, it could mean new opportunities to grow, create skilled local employment, and help drive the clean energy transition.
"I’ll keep pushing to ensure the benefits of this investment are felt right here in West Lothian and that local firms and workers get the backing they need to thrive.”
The announcement comes alongside other major steps in the Government’s Plan for Change, including new trade deals, falling interest rates, and a renewed push to build a stronger economy that works for every part of the UK.