Reeves Wins Battle for Power to Require Pensions to Invest in UK

UK Chancellor of the Exchequer Rachel Reeves has won a battle for the authority to force pension funds to invest a proportion of their assets in the country, one of her economic growth initiatives that had been stymied by the House of Lords.

The Lords dropped their opposition to the so-called mandation power — which would allow ministers to compel funds to invest 10% of their assets in private markets, at least half of which would be in the UK — after Prime Minister Keir Starmer’s Labour government on Tuesday made concessions over the proposal — including a new sunset clause on the chancellor’s authority and giving a role to regulators to assess any ministerial directions.