Chancellor Rachel Reeves is set to announce plans to encourage more consolidation among the UK's local government pension funds to reduce costs and boost infrastructure investment.
During her Mansion House speech on Wednesday, the Chancellor is expected to encourage more pooling of local government pension funds, which are valued at £354bn – in theory the seventh-largest pension scheme in the world.
Reeves has ruled out merging the 86 separate local council pots in England and Wales into a single ‘super fund’, but she believes more consolidation will reduce administration costs and enhance investment in British infrastructure.
Currently, about half of Local Government Pension Scheme (LGPS) assets are run across eight pools.
