Commons Sense

House of Commons · Ministers' Questions

Regional Economic Growth: Pension Funds

Tuesday 4 November 2025 · 4 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 4 Not answered 0

Key points

  • Anna Dixon questioned the West Yorkshire Pension Fund's investment in harmful sectors like fossil fuels.
  • Alan Mak highlighted the potential of pension funds to support Britain's tech sector, questioning past Government's effectiveness in channeling investments.
  • Callum Anderson noted the Sterling 20 partnership's role in mobilising domestic capital for productive assets, citing his constituency's readiness for high-quality investment.

Topics (select to filter)

Questions & Answers

Q1 Anna Dixon Lab Shipley
Economy Benefits & Welfare Environment
Context

The West Yorkshire Pension Fund manages more than £19 million and has investments in sectors like fossil fuels. Constituents are concerned about the fund's investment strategy.

Question

Many of my constituents have assets in the West Yorkshire Pension Fund, which manages more than £19 million. I am concerned, however, that some of the fund’s investments are concentrated in sectors that cause harm, such as the fossil fuel industry. Does the Minister agree that the West Yorkshire Pension Fund could invest in socially valuable activities, such as the regeneration of the town centre in Shipley and social homes?

Answer from Torsten Bell (The Parliamentary Secretary to the Treasury)

The LGPS actually has a strong track record of local investment, including in social housing. The Pension Schemes Bill will introduce requirements for local government pension scheme pools to work with strategic authorities on local investment opportunities.

Partly answered

Not addressed: Did not directly address the specific concern about harmful sector investments and did not commit to investing in socially valuable activities

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Q2 Alan Mak Con Havant
Economy Business & Trade Benefits & Welfare
Context

There is £3 trillion in pension funds that could be used to support the UK's tech sector.

Question

Pension providers play a key role in helping Britain’s tech start-ups turn into world-leading scale-ups, but around £3 trillion in pension funds sits idle. That money should be used to support our tech sector. Will the Minister commit to accelerating the Mansion House reforms successfully introduced by the last Conservative Government?

Answer from Torsten Bell (The Parliamentary Secretary to the Treasury)

I agree with where he started, but unfortunately he then went on to praise some of the work done under the last Government, when we did not see the investment that he talks about coming through and reaching entrepreneurs. That is what the Mansion House Accord, which we have now put in place and supported for the private sector, is doing, and what the British Business Bank is doing by bringing forward the British Growth Partnership.

Partly answered

Not addressed: Did not commit to accelerating reforms but defended current government's actions

How: Criticising Previous Government

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Q3 Callum Anderson Lab Buckingham and Bletchley
Economy Transport Local Government
Context

The Sterling 20 partnership was established to mobilise domestic capital into productive assets in the Oxford-Cambridge growth corridor.

Question

The establishment of the Sterling 20 sends a strong signal that this country is serious about mobilising more of its own domestic capital into productive domestic assets. As the Oxford-Cambridge growth corridor’s anchor, my Buckingham and Bletchley constituency is primed to offer high-quality investment opportunities. Can the Minister set out more detail about how he is working with local authorities, such as the Labour-run Milton Keynes city council, to ensure that we provide that pipeline, and will he meet me to discuss how we can take it further?

Answer from Torsten Bell (The Parliamentary Secretary to the Treasury)

Sterling 20 is a new, investor-led partnership between the UK’s 20 largest pension funds and insurers. We are working closely with the partnership to deliver exactly the kind of investment that my hon. Friend talks about.

Partly answered

Not addressed: Did not provide specific details on collaboration or meeting plans

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Q4 Peter Bedford Con Mid Leicestershire
Benefits & Welfare
Context

The Pension Schemes Bill could force pension funds to invest in government projects, which some argue goes against the trustees' fiduciary duty.

Question

Pension scheme trustees have an obligation to make decisions that they believe are in the best interests of savers, which is otherwise known as their fiduciary duty. The reserve powers in the Pension Schemes Bill could force investment in Government vanity projects, which is contrary to that duty. Does the Minister agree with me and much of the pension industry that mandation is a massive state overreach and is gambling with the futures of those saving for retirement?

Answer from Torsten Bell (The Parliamentary Secretary to the Treasury)

No, not at all.

Partly answered

Not addressed: Did not provide any justification or detail on why he disagrees

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