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Mansion House reforms: UK tech welcomes £75bn startup pension boost

Mansion House pension reforms aim to increase startup funding.
Image credit: Kirsty O'Connor/HM Treasury.

The UK tech industry has reacted positively to an agreement by nine domestic pension providers to assign 5% of their default funds to “unlisted equities” by 2030 under plans outlined in the chancellor’s Mansion House reforms.

The hotly anticipated move will unleash as much as £50bn from defined contribution pensions and £25bn from local government pensions for high-growth companies, according to Chancellor Jeremy Hunt.

It is intended to increase the historically slow flow of capital from UK pension funds into earlier-stage startups.

“If up to £50bn is unlocked by 2030 as the government promises, our homegrown founders will get the fuel they need to build world-beating companies,” said Robin AI CEO Richard Robinson.

“As the US has shown when pension funds flow into the venture capital industry, it creates a virtuous circle of innovation.”...