Radix Big Tent has responded to last night’s announcement by the Chancellor, Rachel Reeves, that she intends to consolidate public sector and DC pension schemes by urging her to do the same with private DB pension schemes.
Research for the New Capital Consensus project, in which Radix Big Tent is a partner, identifies £359bn in local government pension schemes in England and Wales (£598 billion including Scotland and central government schemes) but £1,130 billion in private sector and hybrid schemes.
Radix Big Tent CEO, Ben Rich, says:
“The Chancellor has missed a trick by not also consolidating private DB pension schemes and that needs to come next. The funds to provide capital for productive investment are not just to be found in the public sector and the big prize is to promote the reallocation of both.”
New Capital Consensus is a coalition of Radix Big Tent, the University of Leeds and Finstic (Financial Systems Thinking Innovation Centre), incubated by the Chatham House Sustainability Accelerator, to understand how the investment system contributes to UK low productivity and find ways to release investment capital to address societal problems.
New Capital Consensus’ initial qualitative and quantitative research can be found here. The full reports on which this summary is based will be published shortly. For further information please email Dan Hedley [email protected].
