REFNATION
EconomyEnded 1 Aug

Should UK pension funds invest more in early-stage venture capital?

Yes 37%No 63%112 votes cast

UK and Irish pension funds invested only 0.001% of assets under management in European venture capital in 2024. Dame Anne Glover told Travers Smith's Alternative Insights Summit that pension funds should invest more in early-stage venture and growth capital. The UK government is backing initiatives including the British Business Bank's work with pension schemes on a proposed UK Scale-up Fund.

Jump to opinions· 2

The most striking feature of this vote is not the margin but the silence: with No winning 71 votes to 41, not a single Yes voter troubled themselves to make the case for pension funds ploughing more into early-stage venture capital. Dame Anne Glover's argument at the Travers Smith summit, and the government's British Business Bank push behind a UK Scale-up Fund, went entirely unanswered on the floor.

Instead the debate, such as it was, belonged wholly to the No side, and it fused two distinct objections into one instinct. The higher-rated line was as much about politics as prudence: one voter wrote "Pension is a private matter. I wouldn't want any join up with labour, the biggest tax and spend party going," reading state-backed pension initiatives as a door for government meddling rather than a tool for growth. A second voter made the narrower financial argument, that "Pensions are a low risk, steady return business, not a high risk, high return one," and that "private investors are a more appropriate source" for venture-style risk.

Neither point drew a reply, so the two to one result reflects an argument essentially unopposed rather than one side out-debating the other. That silence from Yes is itself a finding: a policy with government and industry momentum behind it found no advocate among the voters who might have backed it.

The result sits squarely on the long-running fault line between growth-chasing industrial policy and the fiduciary caution baked into UK pension regulation since the low-risk defaults of auto-enrolment, with the chamber here firmly on the caution side of that line, and largely by default.

The Scale-up Fund may yet find backers in Whitehall, but on this page it did not find a single one prepared to stand up and say why.

Pension is a private matter. I wouldn't want any join up with labour, the biggest tax and spend party going

NO case · Glasses · 1 respect

LeftCentreRight
37%
Yes · 41 votes
63%
No · 71 votes
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2 Opinions

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The Standards-First Conservative
Voted noRight lean

Private investors are a more appropriate source that individual pension funds for high risk investment. Pensions are a low risk, steady return business, not a high risk, high return one.

Glasses· 516
The Security-State Householder
Voted noRight lean

Pension is a private matter. I wouldn't want any join up with labour, the biggest tax and spend party going