Andy Burnham Backs £1bn UK Scale-Up Fund: How Pension Cash Will Reindustrialise British Tech
Introduction
In a bold move to bridge the gap between British innovation and domestic capital, a consortium of the UK’s largest pension providers has announced plans to establish a landmark £1 billion UK Scale-up Fund. Backed by the government, the British Business Bank, and the Office for Investment, the initiative aims to inject patient capital into high-growth science and technology startups.
With endorsement from Prime Minister Andy Burnham, the strategy signals a decisive step toward "reindustrialising Britain" while unlocking higher potential returns for millions of pension savers.
What is the UK Scale-up Fund?
The proposed fund is a first-of-its-kind venture capital-style vehicle designed specifically to back British companies seeking to transition from early-stage startups to global market leaders.
The consortium behind the initiative includes major defined contribution, defined benefit, and Local Government Pension Scheme (LGPS) funds:
Railpen
Nest
Border to Coast
LGPS Central
Local Pensions Partnership Investments (LPPI)
Together, these entities oversee hundreds of billions of pounds in assets. Working alongside the British Business Bank - which intends to co-invest alongside the group - the fund will target home-grown breakthroughs in science, deep tech, and advanced engineering, keeping both intellectual property and profits within the UK.
Andy Burnham’s Vision for Pensions and Industrial Strategy
The initiative builds on broader efforts to harness institutional capital for national economic development. It echoes the momentum of the Mansion House Accord, under which major pension funds previously committed to allocating a portion of their assets to unlisted British enterprise.
Commentators note that Andy Burnham’s pension strategy aligns with a renewed industrial vision:
"This new fund would help unlock good growth in every postcode, connecting pension investment with the entrepreneurs and technologies that will reindustrialise Britain and create the jobs of the future," stated Andy Burnham.
Chancellor John Healey and Business Secretary Jonathan Reynolds...
