{"id":128251,"date":"2025-05-24T14:49:17","date_gmt":"2025-05-24T14:49:17","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/128251\/"},"modified":"2025-05-24T14:49:17","modified_gmt":"2025-05-24T14:49:17","slug":"labour-urged-to-stop-bullying-over-pensions","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/128251\/","title":{"rendered":"Labour urged to stop bullying over pensions"},"content":{"rendered":"

By JESSICA CLARK <\/a> <\/p>\n

Updated: 05:18 EDT, 24 May 2025 <\/p>\n

The boss of one of Britain’s biggest stocks and shares platforms has accused Labour of trying to ‘bully and cajole’ pension funds over where to invest retirement savings.<\/p>\n

AJ Bell chief executive Michael Summersgill yesterday voiced concerns that Rachel Reeves could instruct pension providers to back unlisted UK equities.\u00a0<\/a><\/p>\n

Retirement saving funds last week caved in to pressure from the Chancellor to boost their investment in private British businesses and infrastructure projects.\u00a0<\/p>\n

Aviva, Legal and General and Phoenix Group were among the 17 firms that vowed to invest 10 per cent of workplace pensions in unlisted assets by 2030 \u2013 with 5 per cent of that allocated to the UK.<\/p>\n

Fears are mounting that Reeves will force pension funds to make the shift if investment continues to lag.\u00a0<\/p>\n

Earlier this month the Chancellor said she was ‘never going to say never’ to such a move. But Summersgill labelled the tactic among ministers to ‘bully and cajole’ firms as ‘crude’. ‘It’s not the right approach’, he said.<\/p>\n

\"Worry: <\/p>\n

Worry: AJ Bell chief executive Michael Summersgill voiced concerns that Rachel Reeves could instruct pension providers to back unlisted UK equities<\/p>\n

AJ Bell is not a pension provider in the traditional sense as it does not control money on behalf of clients. But its customers can open a personal pension on the platform and choose their own investments.<\/p>\n

Summersgill said he was against a mandate, claiming it is ‘highly risky to start mandating what people should do with their money \u2013 it is very complicated’.<\/p>\n

Meanwhile, shares in AJ Bell jumped 8.4 per cent, or 38.4p, to 495.6p, after it reported a rise in half-year sales and profits for the six months to March 31.<\/p>\n

The Manchester-based company has also urged the Chancellor to rule out pension tax changes to avoid speculation ahead of the Budget in October and pressed Reeves to charge forward with Isa<\/a> reform.<\/p>\n

AJ Bell wants cash Isas and stocks and shares Isas to be combined into one product. Such a move would ‘remove a current barrier which requires people to choose one or the other at the outset,’ it said.<\/p>\n

Reeves faced a backlash at the start of the year amid speculation that she was planning a tax raid on cash Isas, including a potential reduction of the \u00a320,000 tax-free allowance.<\/p>\n

AJ Bell said half-year profits rose 12 per cent to \u00a368.8m and revenue was up 17 per cent to \u00a3153m.<\/p>\n

It added 51,000 new customers, taking its total to 593,000 \u2013 a 9 per cent increase. Assets under management hit a record \u00a390.4billion after growing 5 per cent.<\/p>\n

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\n Labour urged to stop bullying over pensions<\/p>\n