Reform UK Unveils Ambitious Plan for £575bn Sovereign Wealth Fund
Reform UK has made a bold commitment to establish a new "British Sovereign Wealth Fund" by consolidating local government pension schemes, as announced by Richard Tice, the party's spokesman for business, trade, and energy. This initiative marks Tice's first major policy package since taking on the role, signaling a strategic shift towards state-led investment in the UK economy.
Comprehensive Government Restructuring for Growth
As part of this sweeping proposal, Reform UK vows to integrate various governmental departments, including housing and energy, into a single, cohesive office dedicated to fostering growth, creating jobs, and reducing costs for citizens. Tice, who serves as deputy leader under Nigel Farage, is set to outline these plans in a speech to Reform supporters in Birmingham, emphasizing a focus on deregulation, a tougher stance on China, and prioritizing affordable energy.
Tice is expected to declare: "This new Great Office of State covering Business, Trade & Energy – including housing – will be a joined-up, comprehensive department incorporating the British Sovereign Fund. Speed and action will be the order of the day. It represents a first for the UK and mirrors the coordinated, strategic, long-term frameworks that have driven success in other high-growth, entrepreneurial nations."
Policy Shift Amid Fiscal Prudence
These policy commitments follow recent statements from Robert Jenrick, Reform's shadow chancellor, who emphasized the party's dedication to fiscal prudence and maintaining the independence of the Bank of England. Notably, Tice had previously suggested greater interference with institutions like the Bank of England, the Office for Budget Responsibility (OBR), and the Financial Conduct Authority (FCA), but his new role will concentrate on deregulation, trade, energy, and state investment instead.
Transforming Local Pensions into a Massive Investment Vehicle
On Tuesday, Tice is scheduled to announce that Reform UK plans to transform the Local Government Pension Scheme into a unified wealth fund, boasting significantly more capital than Rachel Reeves' National Wealth Fund, which holds nearly £28bn. Reform estimates their new fund would be worth a staggering £575bn, compared to the Local Government Pension Scheme's market value of £391bn as of March 2024, covering approximately 6.7 million members across England and Wales.
The revamped fund would invest in listed shares both domestically and internationally, operating under a "strategic UK growth mandate" and collaborating with other sovereign wealth funds and pension entities. This move aligns with Reform's earlier hints about acquiring shares in major companies such as Rolls-Royce and partially nationalizing the water sector.
Trade and Deregulation Priorities
In addition to the wealth fund, Tice is anticipated to advocate for imposing heavy tariffs and strict quotas on Chinese cars, while directing trade policy to safeguard key industries like steel, oil, gas, and defence. The party also plans to prioritize deregulation in areas such as net zero targets, employment rights, property rent, and planning processes, aiming to reduce costs for businesses despite acknowledging these regulations as "well-intentioned."
This comprehensive policy package underscores Reform UK's vision for a more interventionist economic approach, leveraging pension assets to stimulate national growth and competitiveness on the global stage.
