Tag: Treasury

The press release issued by HM Treasury on 9 June 2025.

Everyone over the State Pension age in England and Wales with an income of, or below, £35,000 a year will benefit from a Winter Fuel Payment this winter.

Nine million pensioners to receive Winter Fuel Payments this winter as all pensioners in England and Wales with an income of, or below, £35,000 a year will benefit from a Winter Fuel Payment. This extends eligibility to the vast majority of pensioners, with around 9 million, or over three quarters, benefitting. This threshold is well above the income level of pensioners in poverty and is broadly in line with average earnings, balancing support for lower income pensioners with fairness to the taxpayer

This change will cost around £1.25 billion in England and Wales and see means-testing of the Winter Fuel Payment save around £450 million, subject to certification by the Office for Budget Responsibility (OBR) compared to the system of universal Winter Fuel Payments. The costs will be accounted for at the Budget and incorporated into the next OBR forecast. The Chancellor will take decisions on funding in the round at that forecast to ensure the government’s non-negotiable fiscal rules are met. This will not lead to permanent additional borrowing.

No pensioner will need to take any action as they will automatically receive the payment this winter, and for those with incomes above the threshold it will be automatically recovered via HMRC. The payment of £200 per household, or £300 per household where there is someone over 80, will be made automatically this winter. Over 12 million pensioners across the United Kingdom will also benefit from the Triple Lock, with their State Pension set to increase by up to £1,900 this parliament.

Chancellor of the Exchequer Rachel Reeves said:

Targeting Winter Fuel Payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest.

But we have now acted to expand the eligibility of the Winter Fuel Payment so no pensioner on a lower income will miss out. This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter.

Pensioners above the £35,000 threshold will have the full amount of the Winter Fuel Payment they received automatically collected via PAYE, or via their Self-Assessment return. No one will need to register with HMRC for this or take any further action.  Pensioners who want to opt out and not receive the payment at all, will be able to do so, with details to be confirmed.

Making these changes now gives people certainty and ensures that payments can be made in time for this winter. Payments will be better targeted than before 2024-25 when they were previously paid to all pensioners regardless of their income, meaning those on lower and middle incomes will still receive the help they need, ensuring fairness for both pensioners and taxpayers.

Approximately 2 million individuals in England and Wales over State Pension age have taxable incomes above £35,000.

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More information

• Eligibility is based on a person’s age and place of residence during the qualifying week (the third full week of September). For winter 2025/26, the qualifying week will be 15 to 21 September 2025.
• A person needs to have reached State Pension age by the end of the qualifying week to be eligible.
• Winter Fuel Payments are worth £200 per household, or £300 per household where there is someone aged 80 or over. Shared payments are made to pensioners not on an income-related benefit.
• The payment will be recovered from individuals via HMRC based on their individual taxable incomes. There will be no need for household incomes to be aggregated.
• It will be recovered via PAYE for the vast majority, or in their Self-Assessment tax return for the minority who file and pay their taxes in this way. HMRC will work closely with representative bodies to ensure the process is as simple as possible with clear guidance for taxpayers.
• For those who would like to opt out from receiving the Winter Fuel Payment, DWP will develop a simple system to enable individuals to do so, removing the need for HMRC to recover the payment. Further information will be on GOV.UK in due course.
• The government will be publishing an equalities analysis alongside the legislation and a Tax Information and Impact Note at Budget.

Further background

• As of winter 2024/25, Winter Fuel Payments were restricted in England and Wales to pensioner households receiving Pension Credit or certain other income-related benefits.
• It is worth £200 for eligible households, or £300 for households with someone aged 80 or over. It is a non-contributory, household payment to support pensioners during the colder months.
• From 2025/26 Winter Fuel Payments will be payable in England and Wales at £200 for households including someone between State Pension age and 79, and £300 for households including someone aged 80 or over. Where the household is not getting an income related benefit, such as Pension Credit, a shared payment will be made – e.g. a couple, each under 80, not on Pension Credit will receive a payment of £100 each.
• Winter Fuel Payments are transferred in Northern Ireland. The policy area is devolved to Scotland. The Scottish Government and the Northern Ireland Executive will both receive a mechanical uplift in their funding as a result of this change in England and Wales.

The press release issued by HM Treasury on 4 June 2025.

Working people in cities and towns from Sunderland to Solihull will benefit from the biggest investment in regional transport, as every part of the country prospers under Plan for Change.

Working people across the North, the Midlands and the South West will benefit from the biggest ever investment in buses, trams and local train infrastructure in city regions as the Chancellor today promises the renewal of Britain to make all parts of the country better off.

In a speech in Greater Manchester, Reeves is expected to say that “a Britain that is better off cannot rely on a handful of places forging ahead of the rest of the country”, adding that the “result of such thinking has been growth created in too few places, felt by too few people and wide gaps between regions, and between our cities and towns”.

Reeves will say that the Spending Review next week will take different choices, with investment in a “new economic model – driven by investment in all parts of the country, not just a few”.

She will unveil the first investment announcements from the Spending Review, with £15.6 billion of funding for local transport projects in England’s city regions – including South Yorkshire, the North East, the East Midlands and Tees Valley. The funding – a more than double real-terms increase in capital spending on local transport in city regions by 2029/30 compared with 2024/25 – will empower local leaders to invest in transport projects that will make a difference to their local area.

Transport Secretary Heidi Alexander, said:

Today marks a watershed moment on our journey to improving transport across the North and Midlands – opening up access to jobs, growing the economy and driving up quality of life as we deliver our Plan for Change.

For too long, people in the North and Midlands have been locked out of the investment they deserve. With £15.6bn of Government investment, we’re giving local leaders the means to drive cities, towns and communities forward, investing in Britain’s renewal so you and your family are better off.

This long-overdue investment outside of London and the South East will see projects like the Metro extension linking Washington to Newcastle and Sunderland and the renewal South Yorkshire’s tram network linking employment and housing areas in Sheffield and Rotherham get off the ground – creating jobs, better commutes, bigger labour markets and more opportunity.

The game-changing funding comes ahead of next week’s Spending Review when the Chancellor will set out how this government is investing in the country’s future and the priorities of working people to make every part of Britain better off.

The five-year settlements will mean the Mayor of West Yorkshire can commit to delivering the West Yorkshire Mass Transit, which will be fully integrated with cycling, walking, bus and rail, making journeys quicker, more accessible and more reliable across the region.

The funding will also mean the Mayor of the West Midlands can build a metro extension to Birmingham’s sports quarter, making a start on his ambitions to deliver mass transit from East Birmingham to North Solihull.

It will also allow the Mayor of Greater Manchester to transform the Metrolink tram network, with new stops in Bury, north Manchester and Oldham and a Metrolink extension to Stockport town centre.

The Chancellor is also expected to confirm “a step change in how government approaches and evaluates the case for investing in our regions” following a review of the Treasury’s Green Book and how it is used, “to make sure that this government gives every region a fair hearing when it comes to investments”.

The full conclusions of the Green Book review will be published on June 11, alongside the wider Spending Review.

Henri Murison, Chief Executive of the Northern Powerhouse Partnership, said:

This government’s decision to back major local transport projects with serious, long-term investment will be critical to driving regional growth. The economic revival of Greater Manchester, enabled by sustained investment in the tram network in particular, has already begun to close the productivity gap with London. To build on that success and replicate it across all our regions in the North, we need to see key projects delivered – including the extension of the Metro to Washington, the replacement of the Sheffield tram fleet, and the extension of Metrolink to Stockport.

Too many times in the past, a trade-off was made – due to limited funding – between connectivity within and between our regions. The spending rules adopted last autumn mean this government can invest in both at the same time, unlocking far greater productivity gains than prioritising one at the expense of the other.

Jonny Haseldine, Head of Business Environment at the British Chambers of Commerce, said:

The pathway to the strong and consistent growth the UK economy needs has to come through investment in our regions.

That means developing regional infrastructure, including transport projects and grid connectivity, improved rail capacity and electrification of key sections of the network.

These projects can then give firms involved in the supply chains real confidence to start planning and investing in their local economies.

But it is critical that no corner of the UK gets left behind and regional development works in alignment with national goals.

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More information

Mayoral breakdown of Transport for City Regions funding:

Mayoral Combined Authority	Funding allocation (27/28-31/32) (1)	Projects likely to be taken forward by mayors
West Midlands	£2.4 billion	Metro extension connecting Birmingham City Centre to new sports quarter, unlocking £3bn investment from private investors. This is the first phase of new mass transit from East Birmingham to North Solihull.
West Yorkshire	£2.1 billion	Spades in the ground to start building West Yorkshire Mass Transit by 2028, with aim for first services by mid-2030s. Transforming six transport corridors in West Yorkshire not covered by the mass transit routes, including through new bus stations at Bradford and Wakefield
Greater Manchester	£2.5 billion	Major infrastructure projects to unlock new homes, jobs and better connect communities, including growing and transforming the Metrolink tram network, with new tram stops in Bury, Manchester and Oldham and Metrolink extension to Stockport. A fully electric Bee Network, with zero emission public transport network across bikes, bus and tram by 2030, including purchase of 1,000 new electric buses.
South Yorkshire	£1.5 billion	£530m to renew the tram network, providing a fleet of new, replacement vehicles, modernising tram stops, as well maintenance to improve reliability. £350m to reform South Yorkshire’s buses, with franchised buses operating in Sheffield, Doncaster and Rotherham by 2027 and across the whole of South Yorkshire by 2029.
Liverpool City Region	£1.6 billion	£100m for 3 new bus rapid transit routes, to the Liverpool John Lennon Airport, Everton stadium and Anfield. Buying a brand-new fleet of buses for the city region’s franchised bus network, beginning with St Helens and the Wirral in 2026 and then Sefton, Knowsley, North and South Liverpool in 2027.
North East	£1.8 billion	Metro extension linking Newcastle and Sunderland via Washington, serving one of the largest advanced manufacturing zones in the UK.
West of England	£0.8 billion	£150m to improve rail infrastructure across the region, including funding to support WECA’s ambitions for increased frequency of services between Brabazon and the city centre. £200m for Mass transit development between Bristol, Bath, South Gloucestershire and North Somerset.
Tees Valley	£1.0 billion	£60m for the Platform 3 extension at Middlesbrough station, unblocking the local network.
East Midlands	£2.0 billion	Designing a new mass transit system to connect Derby and Nottingham, encompassing road, rail and bus improvements across the Trent Arc corridor.

(1): Some of this funding will be brought forward to 2025/26 and 2026/27 to ensure communities see the benefit of this significant investment even earlier.

Ben Plowden, Chief Executive of Campaign for Better Transport, said:

It’s great to see the Government investing in the local transport infrastructure that will tangibly improve the lives of millions across our city regions and particularly good to see trams being prioritised in several areas. Fast, frequent and reliable public transport is essential to unlocking opportunity and driving inclusive economic growth.

We hope to see similar commitments to revenue funding in next week’s Spending Review, alongside support for local authorities to plan, deliver and run the high-quality transport services their communities need.

Mark Casci, Head of Policy and Representation at West and North Yorkshire Chamber of Commerce, said:

This commitment to fund mass transit in West Yorkshire can be a game changer for the region.

West Yorkshire is home to a world-class business community, but the region is held back by poor connectivity which impacts upon our productivity.

By delivering this much needed infrastructure upgrade to the region, West Yorkshire can finally punch its weight and deliver enhanced returns for UK PLC.

The press release issued by HM Treasury on 2 June 2025.

• New report commissioned by Chancellor, Rachel Reeves, reveals £multibillion price British taxpayers paid for reckless handling of Covid contracts
• Previous government failure to test defective PPE leaves millions of taxpayer pounds unrecoverable
• It comes as Reeves drives work to recover £468 million for communities and public services, underlining commitment to investigate and account for every penny spent during the pandemic under the Plan for Change

Failed pandemic-era PPE contracts cost the British taxpayer £1.4 billion, as an interim report commissioned by Chancellor, Rachel Reeves, lays bare the scale of the scandal.

The Covid Counter Fraud Commissioner’s report reveals the price the British public has paid for undelivered contracts which saw taxpayer cash squandered on unusable PPE.

The last government’s over-ordering of PPE, and delays in checking it, mean that £762 million is unlikely to ever be recovered. These failures saw substandard PPE – gowns, masks and visors – not inspected for two years, meaning public money could no longer be recouped.

Now Reeves is going further and faster to recover the £468 million that could still be recovered from suppliers – money which the government will put back into communities and public services including the NHS, police and armed forces.

Recovery action has so far resulted in £182 million being returned to the public purse, and PPE suppliers referred to the National Crime Agency for suspected fraud.

Chancellor Rachel Reeves said:

The country is still paying the price for the reckless handling of Covid contracts which saw taxpayer pounds wasted and criminals profit from the pandemic.

This investigation and plan to recover public money underlines our commitment to ensure that every penny spent during the pandemic is fully accounted for.

We have always been clear that money poorly spent or fraudulently claimed belongs to the British people. This Government will bring criminals to justice and put taxpayer’s money back where it belongs – in the NHS, police and armed forces.

Most of the wasted money went on surgical gowns. Over half (52%) were non-compliant, but because much of the defective PPE was not quality tested until after warranties had expired, there is little chance of recovering the money.

This interim report marks the end of Phase one of Commissioner Tom Hayhoe’s investigation– scrutinising PPE contracts. The Commissioner has now begun work on Phase two, which will see it investigating fraud and error in other pandemic spending programmes such as furlough, bounce-back loans, Business Support Grants and Eat Out to Help Out.

The Commissioner will provide a full update in a final report to the Chancellor at the conclusion of his term in December 2025.

The press release issued by HM Treasury on 30 May 2025.

Final share sale ends nearly 17 years of public ownership.

• Millions of savers and businesses protected during the financial crisis
• Taxpayers prioritised through value-for-money sales at market price since this government came to office

The government has sold its remaining shares in NatWest Group (formerly Royal Bank of Scotland, RBS) — ending public ownership that began when it stepped in to protect millions of savers and businesses during the financial crisis.

That intervention prevented the UK economy and financial system from going over the edge – protecting millions of savers, businesses and jobs.

Over 2008 and 2009, the government provided £45.5 billion to stabilise RBS (now NatWest), which at the time was one of the largest banks in the world- with over 40 million customers and operations in more than 50 countries.

Chancellor of the Exchequer, Rachel Reeves, said:

Nearly two decades ago, the then Government stepped in to protect millions of savers and businesses from the consequences of the collapse of RBS. That was the right decision then to secure the economy and NatWest’s return to private ownership turns the page on a significant chapter in this country’s history. We protected the economy in a time of crisis nearly seventeen years ago, now we are focused on securing Britain’s future in a new era of global change.

Economic Secretary to the Treasury, Emma Reynolds said:

Bringing NatWest fully back into private ownership marks a significant milestone for the UK banking sector following the financial crisis.

Since coming into government, we have halted the NatWest retail share sale, which could have cost taxpayers hundreds of millions. Instead, we put taxpayers first by only selling NatWest shares at market value— securing more money to invest in vital public services.

To date, £35 billion has been returned to the Exchequer through share sales, dividends and fees. While this is around £10.5 billion less than the original support, the alternative would have been a collapse with far greater economic costs and social consequences.

The Office for Budget Responsibility are clear on this point: the cost of doing nothing would almost certainly have been far greater than the difference between the capital injected and proceeds returned.

Allowing the bank to fail would have devastated people’s savings, mortgages and livelihoods — and shattered confidence in the UK’s financial system.

Since taking office in 2024, the government has prioritised securing value for taxpayers — scrapping plans for a retail sale that could have cost hundreds of millions of pounds due to the need to sell shares at a discounted price to attract retail buyers.

Instead, shares were sold only at market price and when it represented value for money  — helping fund the Plan for Change to invest in the NHS, education and defence.

The government has now exited all banking sector interventions made during the financial crisis.

Notes to editors

• Shares were sold through three accelerated bookbuilds in 2015 (£2.1bn), 2018 (£2.5bn), 2021 (£1.1bn), five directed buybacks of shares by NatWest in March 2021 (£1.1bn), March 2022 (£1.2bn), May 2023 (£1.3bn), May 2024 (£1.2bn), and November 2024 (£1bn), and a trading plan from 2021–2025
• The final shares were sold through the trading plan on 30 May 2025. In total, the trading plan generated over £13.2bn in proceeds from sales of NatWest shares
• Peak government stake in RBS was 84.4%
• A retail sale, proposed under the previous government, was cancelled in 2024 due to the additional costs to taxpayers, estimated in the hundreds of millions
• UK Government Investments (UKGI), who managed the shareholding on behalf of HMT, ensured all sales delivered value for money
• Explainer of total amount received by government in relation to NatWest shareholding:

Type	Amount (£bn)	Comments
Sale proceeds	24.77	Total combined proceeds from sales of the shareholding between 2015 and 2025.
Dividends	4.91	Total combined dividends received since the bank recommenced dividend payments in 2018.
Dividend Access Share	1.51	Combined value of payments made to retire the DAS, which provided enhanced dividend rights to HMT following the provision of capital support to RBS. The DAS was retired in 2016.
Asset Protection Scheme fees	2.50	Fees paid by RBS in exchange for its participation in the APS, which protected against exceptional credit losses on certain portfolios of assets. RBS exited the APS in 2012.
Contingent Capital Facility fees	1.28	Fees paid in return for the provision of an £8bn CCF to RBS by HMT in 2009. The CCF was terminated in 2013.
Total	£34.98
*Numbers may not sum due to rounding

The press release issued by HM Treasury on 30 May 2025.

The Chancellor today (30 May) has nominated Richard Hughes as Chair of the OBR for a second and final 5-year term of office.

The OBR is the UK’s official independent economic and fiscal forecaster, responsible for examining and reporting on the sustainability of the public finances. The Budget Responsibility Committee (BRC), led by the Chair, has executive responsibility for the OBR and is responsible for judgements made in preparation of the OBR’s economic and fiscal forecasts.

Fiscal stability is at the heart of this government’s most important mission to grow the economy. This is why the first bill it passed included the fiscal lock, so that no administration can sideline the OBR.

The Treasury Committee approves all appointments to the BRC. Richard will appear before the committee for a pre-appointment hearing in due course.

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Further information

• Richard Hughes has been the Chair of the OBR since 2020. He is the second permanent Chair.
• As set out in the Budget Responsibility and National Audit Act 2011, appointments to the OBR’s BRC require consent from the Treasury Committee.
• The Budget Responsibility and National Audit Act 2011 allows each term of a BRC member, including the Chair’s, to be up to 5 years in length and each member may serve a maximum of two terms.

About the OBR

The OBR was created in 2010 to provide independent analysis of the UK’s public finances. The OBR is led by the three members of the BRC who have executive responsibility for carrying out the core functions of the OBR, including any judgements made in the preparation of the economic and fiscal forecasts. The current members of the BRC are:

• Richard Hughes (Chair)
• Professor David Miles
• Tom Josephs

About the reappointment process

Reappointments are not automatic, and each case is considered on its own merits. The decision to nominate Richard Hughes for reappointment was made by the Chancellor of the Exchequer, in line with the requirements of the Governance Code for Public Appointments. Richard’s reappointment will be finalised subject to the Treasury Committee’s consent.

The press release issued by HM Treasury on 29 May 2025.

Millions of workers are set to retire with bigger pension pots as the Government confirms plans to double the number of UK pension megafunds by 2030, unlocking billions to invest in Britain’s future.

Reforms set to be introduced through the Pension Schemes Bill will mean all multi-employer Defined Contribution pension schemes and Local Government Pension Scheme pools operate at megafund level, managing at least £25 billion in assets by 2030. Evidence from Australia and Canada shows that this size allows pension funds to invest in big infrastructure projects and private businesses, boosting the economy while potentially driving higher returns for savers.

These changes will drive more investment directly into the UK economy for new homes and promising scale-up businesses, with over £50 billion secured through the recent voluntary commitment from pension funds to invest 5 percent of assets in the UK and new local investment targets for Local Government Pension Scheme authorities.

This tackles the gradual decline in domestic investment from UK pension funds, where around 20 per cent of Defined Contribution assets are currently invested compared to over 50 per cent in 2012, as the Government goes further and faster to drive growth, create jobs and put more money into people’s pockets through the Plan for Change. More than 50 scale-up businesses have signed a joint letter to the Chancellor welcoming the reforms as a ‘significant milestone in ensuring British institutions back British businesses at the scale required to generate growth, employment and wealth.’

New figures from the final report of the Pensions Investment Review published today also show that these reforms will drive higher returns for savers, in part by cutting waste in the system. By 2030 these schemes could be saving £1 billion a year through economies of scale and improved investment strategies. As a result, an average earner who saves over their career could see a £6,000 boost to their Defined Contribution pension pot at retirement through the creation of megafunds – with even better returns expected to be generated through changes in the upcoming Pension Schemes Bill.

Chancellor of the Exchequer, Rachel Reeves, said:

We’re making pensions work for Britain. These reforms mean better returns for workers and billions more invested in clean energy and high-growth businesses – the Plan for Change in action.

Deputy Prime Minister, Angela Rayner said:

The untapped potential of the £392 billion Local Government Pension Scheme is enormous. Through these reforms we will make sure it drives growth and opportunities in communities across the country for years to come – delivering on our Plan for Change.

Today’s pensions announcements follow a month of major delivery milestones for the Plan for Change: new trade deals with India, the US and the EU, UK growth the highest in the G7, and the fourth interest rate cut since last summer after the government secure the economy’s foundations.

Multi-employer defined contribution pension schemes will be required to operate at megafund level, managing £25 billion or more in assets, and the full investment might of the £392 billion Local Government Pension Scheme (LGPS) will be unleashed by consolidating assets currently split over 86 administering authorities into just 6 pools.

Defined Contribution schemes will be given more freedom through legislation to move savers into better performing funds, enabling bulk transfer of assets into the megafunds while ensuring savers’ interests are always protected. Schemes worth over £10 billion that are unable to reach the minimum size requirement by the end of the decade will be allowed to continue operating, as long as they can demonstrate a clear plan to reach £25 billion by 2035.

The Mansion House Accord shows DC schemes are voluntarily investing more in infrastructure and businesses. To provide additional certainty that individual schemes will not lose business by investing in private markets, which offer the potential for higher returns but are expensive to invest in upfront, the Government will take a reserve power in the Pension Schemes Bill to set binding asset allocation targets.

The Pensions Investment Review confirms the March 2026 deadline for LGPS asset pooling, with a backstop power set to be taken in the Pension Schemes Bill to protect the interests of LGPS members and local taxpayers where necessary by directing an Administering Authority to participate in a specific investment pool.

Local investment targets will be agreed with LGPS authorities for the first time, securing £27.5 billion for local priorities. LGPS authorities will work with regional mayors, Welsh Authorities and councils to back the projects that matter most to the 6.7 million public servants – most of whom are low-paid women – whose savings they manage.

Minister for Pensions, Torsten Bell, said:

Our economic strategy is about delivering real change, not tinkering around the edges. When it comes to pensions, size matters, so our plans will double the number of £25 billion plus megafunds. These reforms will mean bigger, better pension schemes, delivering a better retirement for millions and high investment in Britain.

Irene Graham OBE, CEO ScaleUp Institute said:

This represents a significant milestone in ensuring British institutions back British business – at the scale required – to generate growth, employment and wealth. UK pension funds are central to achieving this goal and addressing the UK’s longstanding growth capital gap that have held back growth ambitions.

The ScaleUp Institute, and the broad representatives of the scaleup economy across the UK, have written to the Chancellor today to welcome the Government’s final report on the Pensions Investment Review and the Government’s commitment to double the number of UK pension megafunds by 2030, thereby unlocking billions of patient capital to scaling businesses across the country.

The changes come as London CIV has become the first LGPS pool to announce its intention to work with the British Business Bank on the launch of the British Growth Partnership (BGP), joining Aegon UK and NatWest Cushon, who last year announced their intention to collaborate on the BGP and invest in fast-growing businesses. These three funds manage a combined £274 billion in assets.

The upcoming Pension Schemes Bill will continue the Government’s fundamental reset of our pensions landscape, including by tackling the small pots problem, allowing Defined Benefit surpluses to be safely released, requiring every scheme to deliver value for money, and ensuring all savers are offered a default retirement income product.

Countries like Canada and Australia show how powerful pension consolidation can be – having built megafunds that invest in assets that boost their economies. Today’s reforms put the UK on the same path.

The press release issued by HM Treasury on 27 May 2025.

IMF upgraded the UK’s growth forecast for 2025 to 1.2%, saying that “an economic recovery is underway”.

Today the IMF released the concluding statement of their findings from the UK Article IV Mission – their annual review of the UK’s economic and fiscal outlook and policies.

As part of this, the IMF upgraded the UK’s growth forecast for 2025 to 1.2%, saying that “an economic recovery is underway”.

Chancellor of the Exchequer, Rachel Reeves said:

The UK was the fastest growing economy in the G7 for the first three months of this year and today the IMF has upgraded our growth forecast. We’re getting results for working people through our Plan for Change – with three new trade deals protecting jobs, boosting investment and cutting prices, a pay rise for three million workers through the National Living Wage, and wages beating inflation by £1,000 since the election.

The IMF endorsed the government’s fiscal strategy as striking ‘a good balance between supporting growth and safeguarding fiscal sustainability’; the strategy focuses on delivering stability through ironclad commitment to our robust fiscal rules and a single fiscal event a year, while increasing investment and pursuing ambitious structural reform to boost productivity and growth. Growth is the solution to the challenges we face, and this government is going further and faster to unlock growth that is sustainable in the long term.

The IMF also highlighted support for the government’s Growth Mission, and that it “focuses on the right areas to lift productivity”. Through the Growth Mission, the government is restoring stability, increasing investment, and reforming the economy to drive up prosperity and living standards across every region of the UK.

The IMF welcomed the government’s spending plans as “credible and growth-friendly”, noting that “they are expected to provide an economic boost over the medium term”. The government’s upcoming Spending Review, Industrial Strategy and Infrastructure Strategy will deliver the certainty and stability businesses need to invest in the UK’s growing and high potential sectors.

The IMF’s full UK Article IV surveillance report will be published in the summer.

The press release issued by HM Treasury on 15 May 2025.

Capital markets are set to be boosted, as part of this government’s Plan for Change.

Capital markets are set to be boosted, as part of this government’s Plan for Change as we deliver legislation for PISCES, a new type of stock market which will give investors the chance to get in on the ground floor of some of the most exciting companies around, so supporting those businesses to grow.

Today’s announcement means that stock markets can launch their PISCES platforms in the coming months with shares likely to be traded in the Autumn. Thanks to PISCES, private company shareholders, which includes founders and early-stage investors, can more easily realise their gains and reinvest this in productive assets.

In a boost to growth companies and start-ups, the government has also confirmed that it will legislate to ensure employees retain tax advantages on the share options they have, which will make PISCES more attractive and encourage even more businesses to use the platform.

Emma Reynolds, Economic Secretary to the Treasury, said:

Getting PISCES up and running will support UK growth companies. This will boost our capital markets and help to grow our economy, putting more money in working people’s pockets as part of our Plan for Change.

We are also ensuring that employees will retain the tax advantages of shares traded on PISCES to boost the attractiveness of the product to high growth companies looking to expand.

Simon Walls, Executive Director of Markets at the FCA, said:

We are laying the groundwork for a new private stock market that will give investors more opportunities to invest in growing companies.

Today’s legislation is a big step forward and we will set out the final rules for PISCES soon. Together, this will support an organised marketplace to buy and sell private shares.

To ensure employees can continue to benefit from the tax advantages on their shares, the law will be changed to extend to the existing Enterprise Management Incentives (EMI) and Company Share Option Plan (CSOP) contracts to also include PISCES.

This is in addition to the announcement in the Autumn Budget making PISCES transactions exempt from Stamp Taxes on Shares. Today’s announcement on tax mean that employees as well as investors will benefit from the tax changes made, further increasing the attractiveness of the project.

Today’s reform delivers on the Chancellor’s commitment at Mansion House to deliver PISCES, a new innovative market for trading private company shares, combining features of private and public markets.

Companies and investors using the platform will benefit from greater flexibility and have greater freedom to choose when and to whom their shares are traded with, and they will only be required to disclose information ahead of trading.

The platform will act as a stepping stone for companies eyeing a listing in future preparing and easing the journey to an IPO.

With many companies choosing to stay private for longer, there is increasing demand for investors, including angel investors and employees, to be able to trade shares in private companies more easily.

The Financial Conduct Authority will publish their rules underpinning PISCES shortly after the legislation comes into force. Thereafter, those wishing to operate PISCES trading events can apply to the FCA. We expect to see the first PISCES trading events take place later this year.

The press release issued by HM Treasury on 14 May 2025.

Jim O’Neil has been appointed as a new Second Permanent Secretary to the Treasury.

Jim brings a wealth of experience from investment banking and corporate finance to the Treasury, after a long career at Bank of America. He also has experience in the public sector, spending three years at UK Financial Investments. As Chief Executive of UKFI, he managed the government’s holdings in Royal Bank of Scotland, Lloyds Banking Group, and UK Asset Resolution.

His appointment is part of the government’s plan to deliver its number one mission to kickstart economic growth as part of the Plan for Change, and follows the Chancellor’s commitment to lead the most pro-growth Treasury in the country’s history.

Jim’s experience will help the government to secure private investment, boost the economy, and ultimately put more pounds in people’s pockets. His deep knowledge of the private sector will help the government to rip out the barriers to growth, provide support for the key industries at home, and work to secure open and fair trade abroad.

Chancellor of the Exchequer Rachel Reeves said:

I’m very pleased to welcome Jim as our new Second Permanent Secretary, his extensive knowledge of the private sector will be vital in helping us deliver our number one mission to grow the economy. It’s fantastic to have him join the Treasury’s top team.

Jim O’Neil said:

I am delighted to have been appointed Second Permanent Secretary to the Treasury at this important time for our country and our economy. We are living through a time of great change globally, making the need for an economy of stability, resilience, and growth all the more important. I look forward to working with the Chancellor, her ministers, and officials across the department to deliver on these missions so the Treasury can bring positive change to the lives of people right across the country.

Jim is expected to start in his new position in July and will work alongside the two other Second Permanent Secretaries in HM Treasury, Beth Russell who is based at the Darlington Economic Campus and Sam Beckett who is also Chief Economic Adviser. As well as overseeing tax and spending, Beth will continue to be responsible for devolution and regional growth including engagement with regional and local government and others in the north.

Jim was appointed through a fair and open competition and has completed all of the necessary declarations of interest.

The press release issued by HM Treasury on 13 May 2025.

Mansion House Accord unlocks up to £50 billion investment for the economy, with first commitments to invest in the UK.

Up to £50 billion of investment for UK businesses and major infrastructure projects is set to be unlocked through a new agreement with Britain’s biggest pension funds, as the Government goes further and faster to drive growth through the Plan for Change.

Seventeen workplace pension providers managing around 90 percent of active savers’ defined contribution pensions will sign the Mansion House Accord at a roundtable with the Chancellor and Minister for Pensions in the City of London today (Tuesday 13 May).

Signatories to the Accord will pledge to invest 10 percent of their workplace portfolios in assets that boost the economy such as infrastructure, property and private equity by 2030. At least 5 percent of these portfolios will be ringfenced for the UK, expected to release £25 billion directly into the UK economy by 2030.

This investment could support clean energy developments across the country, delivering greater energy security and helping to lower household bills, as well as delivering growth finance to Britain’s world-leading science and technology businesses – creating jobs, boosting businesses and putting more money into people’s pockets.

Pension savers will also benefit from the commitment to invest in private markets. Comparable Australian schemes invest significantly more in private markets and domestic companies than UK schemes, and research suggests greater investment in private markets can deliver security through diversified asset holdings and potentially drive higher returns.

The pledge follows hot on the heels of securing trade agreements with India and the US, which will add billions of pounds to the UK economy and protect thousands of steel and car manufacturing jobs, as well as a fourth interest rate cut since last Summer. This demonstrates the UK’s strength in navigating a changing world, going further and faster through our Plan for Change to drive growth and put more money into people’s pockets.

Rachel Reeves, Chancellor of the Exchequer, said:

Through our Plan for Change, we are choosing to back British businesses and British workers. I welcome this bold step by some of our biggest pension funds, which will unlock billions for major infrastructure, clean energy, and exciting startups — delivering growth, boosting pension pots, and giving working people greater security in retirement.

Torsten Bell, Minister for Pensions, said:

Pensions matter hugely, they underpin not just the retirements we all look forward to, but the investment our future prosperity depends on. I hugely welcome the pensions industry decision to invest in more productive assets, from growing companies to infrastructure. This supports better outcomes for savers and faster growth for Britain.

Today’s announcement is more ambitious than the 2023 Mansion House Compact, where eleven funds committed to the aim of investing 5 percent of their workplace defined contribution default funds – the off-the-shelf funds providers offer to the vast majority of savers – in unlisted companies by 2030. The new commitment involves the vast majority of the industry and brings more assets into scope, doubles the target from 5 percent to 10 percent, and includes a specific commitment to investing 5 percent in the UK.

Progress against the commitment will be monitored and the initiative will be reinforced by measures to be announced in the upcoming final report of the Pensions Investment Review. The final report will tackle fragmentation in the UK pension system, creating pension megafunds that take advantage of scale and consolidation like Australian and Canadian funds do, to invest in productive assets like private markets and big infrastructure projects.

Some pension funds have already indicated privately that they will go beyond the targets agreed through the Mansion House Accord, which could lead to even more direct investment in the UK economy – and is particularly welcomed by the government.

Today’s commitment comes alongside progress in the government’s efforts to help pension savers benefit from the opportunities of investing in UK growth. The British Business Bank has now received regulatory approval from the Financial Conduct Authority to deliver the British Growth Partnership – which will provide UK pension funds and other institutional investors with access to the Bank’s extensive pipeline of UK venture capital opportunities.

The government will continue working with the industry to make sure pension schemes deliver the best possible value for savers — while driving the investment needed to deliver growth and put more money into people’s pockets.

Yvonne Braun, Director of Policy, Long-Term Savings, Health and Protection at the ABI, said:

As major investors, the pensions industry already plays a vital role in driving growth in the UK and globally. The Accord formalises the industry’s ambition to invest more in private markets to diversify investments, support innovation and infrastructure, and ensure prosperity.  Investments under the Accord will always be made in savers’ best interests. It is now critical that Government supports the industry’s ambition, by facilitating a pipeline of suitable investment opportunities, tackling barriers to investments, and delivering wider pension reforms effectively.

Alastair King, Lord Mayor of London, said:

The Mansion House Accord builds on the strong foundations of the Compact and signals a step change in ambition: more signatories, deeper allocations to private markets, and a clearer commitment to backing UK assets. That includes a renewed focus on revitalising the Alternative Investment Market (AIM) of the London Stock Exchange as well as the Aquis Exchange, which play a critical role in supporting high-growth companies that drive innovation, jobs and productivity. If we want those firms to scale in the UK, we must ensure they have the capital to do so. This is not just about better pension outcomes, it is about building a more dynamic, competitive investment ecosystem. Delivering long-term, sustainable growth is crucial and the City of London Corporation is delighted to have partnered with industry and Government to bring this ambition to life.

Zoe Alexander, Director of Policy and Advocacy at the PLSA, said:

UK pension schemes already invest billions in UK growth assets. This accord demonstrates the collective ambition of the DC sector to do even more, as well as its confidence that the UK will provide the right opportunities to invest, consistent with schemes’ fiduciary duty to members. The Government, in its turn, has committed to take action to ensure there is a strong pipeline of investable assets for pension schemes. With everyone playing their part, there is great potential to boost returns for savers while providing vital funding to productive growth areas.

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More information

• This is a voluntary expression of intent by seventeen signatories. The Mansion House Accord has been jointly led by the ABI, City of London Corporation and the Pensions and Lifetime Savings Association.
• Signatories to the new commitment include: Aegon, Aon, Aviva, Legal & General, LifeSight, M&G, Mercer, Natwest Cushon, Nest, NOW: Pensions, Phoenix Group, Royal London, Smart Pension, the People’s Pension, SEI, TPT Retirement Solutions and the Universities Superannuation Scheme (USS).
• The signatories to the Accord have stated that £252 billion of assets are subject to the pledge. Based on historical growth rates (which have been halved to reflect a maturing market (17% per annum)) and reflecting further consolidation in the pensions market, this could rise to around £740 billion by 2030.
• The £50 billion and £25 billion cash estimates for investment unlocked are indicative and assume current private market investment levels are at 3.5%, of which 40% is UK-based. These are increased to 10% and 50% respectively by 2030 in line with the Accord.
• Some providers have indicated they may exceed the private markets investment targets in the Accord, which could lead to additional investment.
• Investments will support UK growth sectors, including clean energy infrastructure and innovative small businesses.
• Government Actuary Department Analysis from 2024 found that a portfolio with greater exposure to private markets – including infrastructure and private equity – delivered stronger returns than a baseline portfolio comprised largely of overseas equities.
• The Pensions Investment Review interim report was published at Mansion House 2024, with the final report due Spring 2025.
• Pictures will be published on HMT’s Flickr following the signing event.

Stakeholder commentary:

Andy Briggs, Phoenix Group CEO, said:

This Mansion House Accord will unlock investment in UK private markets while helping deliver better long-term returns and retirements for millions of pension savers. The new commitments have the potential to strengthen the economy by fuelling the growth of British businesses and boosting investment in critical infrastructure.

Phoenix Group has already taken a lead by launching Future Growth Capital — the first private market investment manager formed to deliver the commitments made in the initial Mansion House Compact — committing £2.5bn over three years to the UK’s most exciting, innovative and fastest growing companies. The Accord is the natural next step, and we’re proud to play our part in delivering better outcomes for our customers and for the wider society.

Patrick Heath-Lay, Chief Executive Officer of People’s Partnership, provider of People’s Pension, said:

People’s Pension has a vital role to play in the exciting, shared vision for the future of the pensions’ industry, which will see bigger, stronger, value-driven schemes that will deliver better value to their members. By signing this Accord, we are reaffirming how seriously we take our commitment to delivering better outcomes, as well as helping to drive UK economic growth.

David Lane, Chief Executive of TPT Retirement Solutions, said:

By reaching an agreement with pension providers to invest in UK productive finance in a mutually beneficial way, the Government can achieve its objective and support better outcomes for scheme members. Many pension schemes already invest in productive finance, and most are open to investing more in the UK. Investment in assets such as infrastructure, transportation, housing, venture capital and private markets can play an important role in improving risk-adjusted returns for members while also contributing to economic growth.

Meeting the Government’s objectives while also maintaining fiduciary duty and ensuring strong returns for members are not mutually exclusive ambitions. However, hurdles remain around value for money considerations and the availability of suitable investment opportunities. These should be a focus for Government policy to spur more investment. The most pressing issue to deal with is that provider pricing practices leave very little room in the annual management charge for investment fees. There needs to be a shift to a value for money approach that considers the returns from an investment and not just its fees.

Jelena Croad, Head of LifeSight GB, said:

Signing up to the Mansion House Accord is a significant step for LifeSight. We believe that private market investments can increase overall returns as part of a diversified portfolio and have already begun investing in this way.

Our ability to invest in private markets, without increasing existing fee agreements, showcases our dedication to providing the best possible outcomes for our members. We are excited to be part of this initiative and look forward to contributing to the growth of the economy in which our members live.

We are pleased that the government acknowledges the need to increase the pipeline for UK private market investment opportunities. This recognition aligns with our mission to support the growth of innovative firms and sustainable infrastructure within the UK, ultimately enhancing the retirement incomes of millions of UK pension savers.

For LifeSight members, these investments are being made as part of our main default funds, ensuring that our members benefit from high-quality investment opportunities.

Steve Charlton, a member of SPP’s DC Committee and DC Managing Director at SEI, said:

Due to ongoing collaboration and open dialogue between the industry and the UK government, we have become comfortable with the proposed changes to the Mansion House reforms. This accord demonstrates our collective ambition to have a consolidated workplace pension environment that provides flexibility and choice for pension funds to invest where they see opportunity, whilst balancing their responsibility to members.

We welcome the government’s commitment to ensure a good flow of investable opportunities for pension schemes. This mitigates our previous concerns about the risks of high-priced, poor-quality investments in an environment where the originally proposed investable opportunities are scarce. It enables everyone to play their part in helping to deliver better member outcomes and drive economic growth.

Lorna Blyth, Managing Director – Investment Proposition at Aegon UK, said:

Aegon UK is proud to be a signatory of the Mansion House Accord, which aligns with our aim to deliver better long-term outcomes for our pension scheme members.

We are committed to ensuring our customers can access and share in the potential growth and success of new, innovative companies as part of diversified portfolios. Leveraging our partnership with the British Business Bank, along with our scale and expertise, we are dedicated to developing investment solutions that improve the retirement outcomes of the millions of members of the defined contribution pension schemes we support. We’ve made significant progress in becoming a DC provider fit for the future – but our journey doesn’t end here.

The Accord is a key element of the Government’s growth agenda, alongside other initiatives likely to transform the UK’s DC pensions market. It comes as the conclusions of the Pensions Investment Review are expected imminently and further fundamental changes are expected in the Pension Schemes Bill later this spring. This makes it essential that the Government adopts a pragmatic approach to implementation. Realistic timeframes and a steady supply of high-quality UK investment opportunities across all private asset classes are crucial for ensuring success. This includes collaborating with more organisations such as the British Business Bank to provide access to diverse types of private assets – from private equity to infrastructure, which are all vital for optimising member benefits and developing investment portfolios designed for long term growth.

Amanda Blanc DBE, Aviva Group Chief Executive Officer, said:

This is a major opportunity for the pension and investment industry to support UK growth while delivering improved outcomes for pension savers. As a significant investor in private markets, Aviva has recently launched a number of funds to give over four million workplace pension customers even greater opportunity to invest in UK assets, including innovative, early-stage businesses, and we want to do much more.

Jo Sharples,  CIO, DC Solutions at Aon, said:

We believe that investing in private assets will benefit pension scheme members by delivering better expected returns over the long-term, ultimately resulting in higher retirement outcomes. The new Mansion House Accord is a great step forward in achieving this and is a fantastic example of how the UK pensions industry can work together to break down barriers to enable greater investment in private assets.