Chancellor Rachel Reeves unveiled plans for pension 'mega-funds' in her first Mansion House speech.
Reeves announced radical reforms that involve merging 86 council pension schemes and consolidating small workplace pensions into a handful of "pension megafunds" to back UK infrastructure.
It follows her debut Autumn Budget and provided an opportunity for Reeves to outline how she wants to grow the economy.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
She said: "For too long, pensions capital has not been used to support the development of British start-ups, scale-ups or to meet our infrastructure needs."
We look at what a Mansion House speech is, the Mansion House speech time, what Rachel Reeves could announce, and how it could affect the pound in your pocket.
What is a Mansion House speech?
The Mansion House speech is an annual address given by the current chancellor. Last year, Jeremy Hunt delivered his speech on 10 July.
The speech takes place at Mansion House in London, which is the official residence of the City of London’s Lord Mayor.
It is often used to sketch out future plans for the industry and is closely watched for clues on the government's next steps on regulation.
The Treasury said about Reeves’s speech: "Mansion House will build on the International Investment Summit [last month] to drive up investment and show what the UK has to offer."
What time is the Mansion House speech?
The Mansion House speech took place on the evening of Thursday, 14 November.
It is delivered to a room full of senior bankers and company bosses at the Annual Financial and Professional Services Dinner.
Andrew Bailey, the governor of the Bank of England, also gave a speech at the event, at 9pm.
What did Reeves announce in the Mansion House speech?
The chancellor used her speech to unveil what she is calling the "biggest pension reforms in decades", designed to unlock a wave of money into UK businesses.
The reforms will see the UK's 86 council pension schemes merged into a handful of "pension megafunds".
It is hoped the changes will lead to billions of pounds being invested in areas such as energy infrastructure, tech start-ups and public services.
Following the speech, Reeves also wrote to the Financial Conduct Authority, Prudential Regulation Committee, Financial Policy Committee and Payment Systems Regulator to ensure a greater focus on supporting economic growth in their remits.
She also wants the FCA to help make sure consumers have access to financial advice and products to help them benefit from economic growth.
-
NS&I slashes rate on British Savings Bonds – are they worth it?The latest announcement from NS&I follows hot on the heels of a reduction to the Premium Bond prize rate last week
-
NatWest boss says a return to full private ownership expected next yearThe UK Treasury's stake in NatWest has fallen to below 11% - here is what it means for the share price
