As November beckons, the keenly awaited Autumn Statement by Chancellor Jeremy Hunt takes centre stage. Anticipation is rife, as the Chancellor is poised to address proposals concerning the mobilisation of pension capital towards bolstering UK growth.

The Government’s strategy is seemingly dichotomous. On one hand, there’s an unmistakable push for investors to underpin infrastructure projects – encompassing realms like water, energy, transportation, and communication. Yet, in a confounding move, the recent High Speed 2 (HS2) announcement seemingly detracts from the country’s commitment to infrastructural excellence, casting shadows on the UK as a coveted investment hub.

Pension funds, with their vast financial clout, are understandably circumspect. The ask is substantial: a £50 billion investment in projects and enterprises that prop up economic advancement. Their reticence springs from a concerning narrative — that the UK, given its current trajectory, may not be the most fruitful ground for such hefty capital allocations.

This scepticism isn’t isolated. The UK’s unenviable position, boasting one of the G7’s lowest business investment figures and lagging behind most of Europe in productivity terms, paints a bleak picture. Reinforcing this sentiment is the British Telecom Pension Scheme. Despite its formidable £47 billion assets and substantial member base, it finds itself seeking investment opportunities beyond British shores.

However, it’s not just about international allure. The UK’s internal projects must be enticing, accountable, and efficient. Pension funds are wary, and rightly so, of projects that spiral beyond their initial budgets, as evidenced by the escalating costs of HS2. From its humble £33 billion beginnings in 2012, envisioning an ambitious railway network, its budget has nearly doubled. Such discrepancies, coupled with the unpredictability of governmental policies swaying with electoral winds, further dissuade firm financial commitments.

I believe that it shouldn’t be on pension funds to ‘Level Up’ the nation. Their charter is unequivocal: to ensure sustainable and profitable returns for their members. Entrusting them with the nation’s ‘Levelling Up’ strategy is a deviation from their core mandate. Government must shoulder this responsibility, equipping regions with the tools and resources needed. The Treasury’s latest Green Book (appraising public investment) emphasises strategic objectives and place based impacts – think levelling up – alongside value for money. Is the Government heeding its own advice?

For a brighter financial future, the UK must pivot to sectors that are not just contemporary but also show immense promise. High-growth industries like life sciences, biotech, fintech, and clean technology beckon. These sectors not only represent the future but also offer tangible returns that pension funds seek.