More than 250 British business leaders have called on Chancellor Rachel Reeves to require pension funds to invest a quarter of their assets in UK companies, a move they say could unlock up to £95 billion in new domestic investment.
In an open letter coordinated by the London Stock Exchange Group and signed by executives from Barclays, JD Sports, and Revolut, the leaders warned that pension fund investment in UK-listed equities has plunged from 53% in 1997 to just 4% this year. They urged Reeves to use her upcoming 26 November budget to reverse the long-term shift toward overseas markets.
The proposal would require all defined contribution (DC) pension schemes—currently holding about £200 billion in assets—to allocate at least 25% of their equity investments to UK-listed companies. Savers could opt out if they prefer other options, but the rule would establish a new “default” favoring British firms.
According to the letter, this reform could boost UK pension investment in domestic equities by £76 billion to £95 billion by 2030, improving access to capital for British businesses and aligning with international norms. It also noted that the public widely supports such action, with 72% of Britons favoring government measures to encourage domestic investment through pension savings.
The appeal builds on Reeves’s earlier initiatives—the Sterling 20 plan and the Mansion House accord—both designed to attract more long-term funding into UK infrastructure and private markets. Business groups now want the chancellor to go further by making British investment a core requirement of the national pension framework.