Seventeen major British pension funds have pledged to significantly increase their investments in UK businesses and infrastructure by 2030, in support of government efforts to drive economic

growth and support public projects through private capital.

Under the voluntary agreement, known as the Mansion House Accord, the investment firms plan to allocate up to 10% of their pension portfolios to infrastructure, property, and private equity. Half of that total—potentially amounting to £50 billion—will be directed specifically toward UK-based assets, according to a government announcement.

Leading firms backing the initiative include Aviva, Legal & General, M&G, and Phoenix. The accord expands on a previous 2023 agreement, doubling the initial investment target of 5% and broadening the scope of eligible asset types.

While the pact is currently non-binding, the government has indicated that it will closely monitor progress and may strengthen the commitment through new measures in an upcoming pension review. Reports have suggested the government is considering legal powers to compel pension funds to prioritize UK investments, raising concerns among some industry leaders.

Phoenix, one of the participating firms, commented: “We support the push for greater domestic investment, but the most effective and sustainable path is through appropriate incentives, not mandates.”

British Finance Minister Rachel Reeves welcomed the expanded accord, saying it would help funnel billions into key areas such as clean energy, infrastructure, and emerging businesses.

Other major signatories include the Universities Superannuation Scheme, the National Employment Savings Trust (NEST), and The People's Pension, reflecting wide support across the sector. Photo by © User:Colin / Wikimedia Commons / CC BY-SA 3.0