A significant consortium of major UK pension providers has today, 27 July 2026, announced its commitment to explore the establishment of a new 'UK Scale-up Fund'. With an ambition to exceed £1 billion, this innovative vehicle is designed to channel institutional capital into the next generation of high-growth British science and technology companies. The move is expected to significantly increase the availability of growth capital within the UK, helping promising innovators to scale faster, commercialise breakthrough technologies, and create skilled jobs nationwide.
This initiative represents a strategic effort to connect the substantial assets managed by pension funds with the dynamic landscape of UK innovation. By investing in successful British companies, the fund aims to deliver robust long-term returns for pension providers and their members. This approach seeks to provide pension savers with greater access to the financial benefits derived from successful UK enterprises, potentially leading to larger retirement pots and contributing to stronger local economies across the country.
The British Business Bank is actively working alongside the pension providers to support the launch of the fund, with an intention to invest in partnership with the group. Concurrently, the Office for Investment is also providing support to the consortium as it develops the framework for this ambitious fund. This collaborative effort underscores a concerted drive to ensure that UK innovation can thrive on home soil, backed by domestic capital.
Prime Minister Andy Burnham lauded the announcement, stating it sends a clear message of confidence in British business, talent, and ambition. He emphasised that the fund would help unlock growth in every postcode, connecting pension investment with the entrepreneurs and technologies poised to reindustrialise Britain and generate future employment opportunities. Business, Innovation, Science and Trade Secretary Jonathan Reynolds echoed this sentiment, highlighting Britain's leadership in science and technology and the importance of enabling more promising businesses to start, scale, and succeed within the UK.
Chancellor of the Exchequer John Healey commented on the importance of growing British companies with British capital, aiming for the UK to become the premier global hub for starting and scaling businesses. He noted that despite having the world's third-largest Venture Capital market, more needs to be done to retain profits within the UK. The Chancellor believes this new £1 billion fund will provide crucial support for British scale-ups and yield better returns for pension savers, fostering investment, jobs, and skills across all regions.
Andy Bord, Chief Executive Officer of Railpen, a participant in the consortium, underscored the fund's potential to deliver strong long-term outcomes for members. He described the UK as a dynamic powerhouse of innovation and the 'UK Scale-up Fund' as a compelling investment opportunity. Bord highlighted how disciplined, patient capital can aid growing companies in scaling, provide attractive returns for pension savers, and generate lasting economic growth, ultimately creating a stronger economy for members to retire into.