Force pension funds to back Britain, bosses tell Reeves

Core Viewpoint - Business leaders are urging Rachel Reeves to mandate pension funds to invest a portion of their assets into British companies, potentially boosting the London stock market by £100 billion [1][2]. Group 1: Pension Fund Investment - Over 250 company leaders, including those from Barclays and GSK, have called for "default" defined contribution funds to invest at least 25% of their assets into British investments [2]. - Pension funds that do not comply with this requirement should be barred from operating as "default" funds, which most British workers contribute to through auto-enrolment schemes [2][3]. Group 2: Economic Impact - Implementing this policy could lead to an additional £95 billion being invested in UK stocks over the next five years, providing a significant boost to the British economy [3][7]. - Last year, British workers contributed nearly £90 billion into pension pots via workplace auto-enrolment schemes, with most funds directed into "default" pension pots [4]. Group 3: Support and Opposition - The letter advocating for this policy was authored by David Schwimmer, CEO of the London Stock Exchange Group, and follows the Mansion House Accord, which aimed for 10% of workplace pensions to be invested in UK companies [5]. - Lloyds Bank's CEO, Charlie Nunn, criticized the proposal, likening it to "capital controls" and expressing concerns about potential conflicts with fund managers' responsibilities to maximize returns for clients [6]. Group 4: Public Sentiment - The proposal is supported by 72% of the British public, indicating a strong desire for increased investment in UK stocks through pension schemes [7].