Politicians of all persuasions would like domestic pension funds to allocate more capital to infrastructure investments in the United Kingdom. The “Mansion House” reforms set out by former Chancellor Jeremy Hunt in 2023 were designed to do exactly this, while the new Labour government committed in its manifesto to a review of the pensions landscape to consider if further measures are needed to encourage investment into U.K. markets.

This growing pressure on U.K. pension funds to invest more at home has faced resistance from some quarters of the industry. Pension schemes have a fiduciary responsibility to members to look for the best possible opportunities to invest their pensions so they will not be coerced into allocating to a specific geography if it does not suit their risk-