Government proposals to use merged pension pots to boost economic growth, could help unlock much needed investment in the UK, according to the British Chambers of Commerce (BCC).
Chancellor Rachel Reeves wants to merge the UK’s 86 council pension schemes into a handful of “pension megafunds”.
It is hoped the changes will lead to billions of pounds being invested in the UK in areas such as energy infrastructure, tech start-ups and public services. 
Shevaun Haviland, Director General of the BCC, said: “Increased investment in the UK economy is crucial if businesses are to deliver the growth, we all want to see.
“And with firms facing into a wall of fresh costs after a tough budget, it is important that the Chancellor looks at the options to unlock more funding.
“UK pensions can be a crucial component in doing that. They can generate billions for investment in infrastructure projects and the businesses of the future.
“The UK is already recognised as one of the best places to start a business, but the ability to scale up remains challenging.
“These reforms, coupled with other recent changes to the British Business Bank, could help our start-ups to expand, while staying in the UK and contributing to valuable economic growth.
“But processes must be put in place to make sure these funds can quickly and effectively find their way into the bank accounts of our many promising SMEs.
“Alongside this, we need to see more investment in UK unlisted equities to drive growth, as well as more collaboration between government and industry to unlock more capital in various pension schemes.”
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