UK Chancellor proposes pension and sustainable finance reforms

Reeves outlined her plan to reforming the pension system: Local Government Pension Schemes in England and Wales will become megafunds. This move could boost savings in pension pots as well as unlock £80 billion in new investment for businesses and infrastructure. Reeves continued to say that trillions of pounds will be mobilised into green energy, the Treasury is drafting legislation for regulating ESG ratings providers, and a UK Green Taxonomy is being developed to create a principled framework for carbon and nature markets in the future. The UK’s representative at COP29 in Baku, Azerbaijan, Growth Minister Lord Spencer Livermore, outlined the UK’s commitment to becoming a sustainable finance capital and driving capital towards climate finance to reform the system. The strategy will include setting growth-focused remits for financial regulators, which Reeves stated have been regulating for risk, and not for growth. She continued that an expanded fraud strategy is in the works alongside tech and telecom sectors.