Pension Schemes Incentivising UK Investment 2023-12-19
2023-12-19
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Response quality
Questions & Answers
Q1
Direct Answer
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Context
The MP is concerned about pension schemes not adequately investing in technology firms and high-growth companies, especially when compared to other countries.
What steps his Department is taking to incentivise pension schemes to invest in the UK. The UK's pension funds lag behind their counterparts in the USA, Scandinavia and Australia for investing in technology firms. Can my hon. Friend continue his work on reforms and ensure that more pension fund investment stays in the UK, to boost our tech sector?
At the autumn statement, we set out a series of measures to improve pension saver returns, increase opportunities for investment and boost the UK's capital markets and high-growth companies. Under the industry-led Mansion House compact, 11 of the UK's largest defined contribution pension schemes have signed up to the objective of allocating at least 5% of their funds to unlisted equities by 2030. We believe that could unlock £50 billion of investment in high-growth companies and should help increase returns to savers.
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Assessment & feedback
Response accuracy
Q2
Direct Answer
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Context
The MP is concerned about the lag of UK pension funds in investing in technology firms and high-growth companies compared to other countries.
Can my hon. Friend continue his work on reforms and ensure that more pension fund investment stays in the UK, to boost our tech sector?
Under the industry-led Mansion House compact, 11 of the UK's largest defined contribution pension schemes have signed up to the objective of allocating at least 5% of their funds to unlisted equities by 2030. We believe that could unlock £50 billion of investment in high-growth companies and should help increase returns to savers.
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Assessment & feedback
Response accuracy
Q3
Partial Answer
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Context
The MP is concerned about ensuring pension fund investment goes to cutting edge businesses such as Wrightbus and Thales, both important in Northern Ireland and the UK.
What steps can be taken to ensure UK-wide investment by pensions schemes in cutting edge businesses such as Wrightbus and Thales?
We need to ensure that the industry abides by its commitment to the 5% target. Working with the Exchequer Secretary, my hon. Friend the Member for Grantham and Stamford (Gareth Davies), we must present the right investment opportunities so that the capital goes into the UK in the right way.
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Assessment & feedback
Specific actions or commitments to invest in Wrightbus and Thales were not provided.
Response accuracy