Commons Sense

House of Commons · Ministers' Questions

Pension Scheme Investment

Tuesday 14 November 2023 · 5 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 2 Not answered 0

Key points

  • Minister announced reforms to boost pensions and increase investment in UK businesses at Mansion House speech in July.
  • Government plans to encourage greater infrastructure investment by UK public sector pension funds through new directions.
  • Chancellor introduced full expensing for three years in the spring Budget, offering competitive business taxes in the OECD.

Topics (select to filter)

Questions & Answers

Q1 Nadhim Zahawi Con
Economy Benefits & Welfare
Context

The MP is concerned about the level of investment by pension funds in UK businesses.

Question

What steps his Department is taking to encourage pension schemes to invest in the United Kingdom?

Answer from Jeremy Hunt

In my speech at Mansion House in July, I announced reforms to boost pensions, increase investment in UK businesses, and improve UK capital market competitiveness. Those reforms could result in over £1,000 a year of additional retirement income and unlock £75 billion-worth of investment in high-growth businesses.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q2 David Simmonds Con Ruislip, Northwood and Pinner
Economy Local Government
Context

The MP notes that local authorities are giving investment managers for their pension funds a mandate to invest in infrastructure.

Question

Many local authorities have given the investment managers for their pension funds a mandate to invest in infrastructure. What plans does my right hon. Friend have to encourage greater infrastructure investment by UK public sector pension funds?

Answer from Jeremy Hunt

Working with the former Economic Secretary to the Treasury, my hon. Friend the Member for Arundel and South Downs (Andrew Griffith), we announced major reforms in July to help local government pension funds lead the way in the transformation we are looking for, in particular by sending a direction that they should invest in pools worth more than £50 billion.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q3 Nadhim Zahawi Con
Economy Taxation Business & Trade
Context

The MP welcomes the proposals made by the Chancellor in his Mansion House speech, which will increase investment in the United Kingdom.

Question

I welcome the proposals that my right hon. Friend the Chancellor made in his Mansion House speech, which will increase investment in the United Kingdom. In his upcoming autumn statement, I implore him to build on his Budget announcement with a policy that was originally advocated for in a paper by the Adam Smith Institute, as set out in my entry in the Register of Members' Financial Interests. I implore him to make full expensing permanent and to scrap the hated factory tax.

Answer from Jeremy Hunt

I was very proud in the spring Budget to introduce full expensing for three years, which gives us some of the most competitive business taxes in the OECD. Only five other countries do that, and I will of course keep under review any possibility to extend that tax break.

Partly answered

Not addressed: The possibility of scrapping the factory tax was not addressed

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q4 Angus MacNeil SNP
Economy Taxation Energy
Context

The MP questions why the UK has a £137 billion deficit while independent Ireland has a €10 billion surplus.

Question

Is investment not needed in the UK given that 13 years of Tory rule have resulted in a £137 billion UK deficit? Meanwhile independent Ireland has a €10 billion surplus from its economic growth and investment. That is an Ireland without the oil or natural resources of Scotland, which is now about to start a sovereign wealth fund. Where did the failing crisis-hit UK go wrong and independent Ireland go right?

Answer from Jeremy Hunt

I find that a very curious question. If the hon. Member is proud of Scotland's natural resources, why does he want to cancel North sea oil and gas exploration, which is the very thing that can give families across the United Kingdom security from the energy shocks we have seen from things such as the invasion of Ukraine?

Not addressed: The questioner's point about economic performance was not addressed

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q5 Tim Farron Lib Dem Westmorland and Lonsdale
Taxation Housing Benefits & Welfare
Context

The MP notes that the Pension Insurance Corporation has announced it is going to invest in helping to support the building of 1,200 new affordable homes.

Question

There is encouraging news in that the Pension Insurance Corporation has recently announced that it is going to invest in helping to support the building of 1,200 new affordable homes in this city. Does the Chancellor agree that pension funds could be a very important source of capital for developing social rented housing around the country—Eden Housing Association, South Lakes Housing, and Westmorland and Furness Council, for example? Will he look at the rules and bring in greater incentives for pension investment funds to invest in affordable housing across the country?

Answer from Jeremy Hunt

We are already working on proposals in that very area. Broadly speaking, we have one of the most robust and resilient pension fund sectors in the world, but we are doing a lot of work to remove the barriers to investing back into the UK. Things such as affordable housing, infrastructure and our growth businesses are areas of great potential.

Partly answered

Not addressed: The specific incentives were not detailed

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)