Keir Starmer and Rachel Reeves to confirm DB surplus release plans

investmentweek.co.uk:

Keir Starmer (left) on his way to the G20 Summit in Brazil and Rachel Reeves (right) at Davos 2025. Pictures: Simon Dawson / No 10 Downing Street and Kirsty O’Connor / Treasury

At a meeting with leaders of some of Britain's biggest businesses in the City of London, the prime minister and the chancellor will outline how restrictions around how well-funded DB schemes will be able to invest their surplus funds will be lifted.

The exact details of the surplus policy will then be set out in the government's response to the Options for Defined Benefit Schemes consultation, which the Treasury said is due to be published this Spring.

Reeves to host meetings with financial services heavyweights over sector and UK growth plans

The move follows speculation the government would announce plans to reform DB surplus rules on Monday (27 January) – proposals that were welcomed by the industry.

Prime minister Keir Starmer said: «The number one mission of my government is to secure growth, drive higher living standards for everyone, and get more money into people's pockets.

»To achieve the change our country needs requires nothing short of rewiring the economy. It needs creative reform, the removal of hurdles, and unrelenting focus. Whether it is how public services are run, regulation or pension rules, my government will not accept the status quo. Today's changes will unlock billions of investment, pushing forward in delivering my Plan for Change."

Chancellor Rachel Reeves added: «I know this government and businesses are united on growth being the top priority for our economy, which is why I am fighting every day to tear down the biggest barriers to growth, taking on regulators, planning processes and opposition to this urgent mission.»