![\"Abandoning](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/99680475-0-Government_figures_show_just_20_of_a_typical_workplace_pension_p-m-2_1750781808038.jpg\")
<\/p>\nBritish pension funds have been urged to back UK companies \u2013 or risk a punishing tax raid in the Budget this autumn.<\/p>\n
Government figures show 20\u00a0per cent of a typical workplace pension pot is invested in the UK \u2013 down from 50\u00a0per cent a decade ago \u2013 with 8\u00a0per cent in equities.<\/p>\n
Much of the rest of the money is invested overseas, including in big US funds with exposure to tech companies such as Amazon, Microsoft and Nvidia.\u00a0<\/p>\n
The lack of investment by pension funds in the UK has been identified as one of the reasons why the stock market is struggling.<\/p>\n
Former pensions minister Baroness Altmann urged fund managers to put more money into UK stocks \u2013 or see tax reliefs hacked away by the Chancellor in a desperate attempt to raise revenues.<\/p>\n
That would be a devastating blow to millions of workers who can save for their retirements tax free.\u00a0<\/p>\n
<\/p>\n
Abandoning Britain: Government figures show just 20% of a typical workplace pension pot is invested in the UK \u2013 down from 50% a decade ago \u2013 with 8% in equities<\/p>\n
Speculation is mounting that Rachel Reeves will target tax breaks on pensions in this autumn\u2019s Budget to help fill a gaping black hole in the nation\u2019s finances.<\/p>\n
\u2018Obviously these reliefs are under threat if things carry on as they are,\u2019 said Altmann, adding that 25\u00a0per cent of new pensions contributions each year should be invested in Britain.<\/p>\n
She said: \u2018I don\u2019t understand why our pension funds think it is perfectly fine to take billions of pounds of taxpayer money and do nothing to benefit the UK economy with it.<\/p>\n
\u2018It seems to me that asking for just a quarter of the new money to be invested in our great British businesses and growth assets is not exactly unreasonable.<\/p>\n
\u2018If pension fund managers, however, don\u2019t believe Britain can deliver decent returns, they can invest more than 75\u00a0per cent abroad, but won\u2019t receive money from taxpayers.\u2019<\/p>\n
Last week it emerged Scottish Widows is reducing the allocation to London-listed shares in its highest growth portfolio from 12\u00a0per cent to 3 per cent.<\/p>\n
A report by the Government in November found only around 20\u00a0per cent of savings in workplace defined contribution pension schemes is invested in the UK.<\/p>\n
The report found that this compared with domestic holdings of 22\u00a0per cent in Canadian schemes, 42\u00a0per cent in New Zealand and 45\u00a0per cent in Australia.<\/p>\n
The lack of UK money going into British stocks has been identified as a reason why so many London-listed companies are undervalued.<\/p>\n
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