SPP polling reinforces industry view that tax incentives may be the best means of delivering UK investment

The Society of Pension Professionals (SPP) this week held an event to explore the opportunities and challenges presented by the Government’s desire to see UK pension funds invest more in UK productive assets.

The event, titled, “UK Growth through Productive Finance” saw participants polled on their thoughts as to how greater UK centred pension scheme investment could best be achieved.

The results demonstrated strong support for tax reliefs or similar financial incentives, mirroring the findings of the SPP Annual Conference in September 2024, which similarly found strong support for tax reliefs as the best means of encouraging such investment.

Over 200 pension professionals attended the event which saw an expert panel of pension professionals spanning DC, DB, Investment, and LGPS.

Attendees were asked, “Assuming this policy initiative proceeds, what single step could the Government take (short of mandation) to deliver greater pension scheme investment in UK productive assets?”

New tax reliefs and/or similar financial incentives were chosen by 44% of respondents, 23% opted for “setting the environment for scheme run-on” and 13% chose “clarifying and/or extending fiduciary duties”.

Other responses included “creating more permissive planning and related regimes” and “further consolidation of schemes and/or assets” both attracting 8% of the votes. Finally, “using the National Wealth Fund for funding, protection, liquidity (etc.)” attracted just 4% of votes.

Simon Daniel, Chair of the SPP Investment Committee, who also chaired the event, said: “It was interesting to see such a clear indication again that the industry considers tax reliefs or similar financial incentives to be the single most effective step the government can take to dial-up pension scheme investment in UK productive assets.

Of course, there are other ingredients available to implement the policy intent, and in reality more than one will be used,, but the SPP has consistently found that financial carrots should be prime amongst them.”