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• Reeves to announce ‘megafunds’ shake-up of local government pension scheme

Rachel Reeves has told the Financial Times that her plans will create eight pension “megafunds”.

She has told the Financial Times that these eight pools, worth an average £50bn by 2030, would end the role of local councils in administering the money and boost “fast-growing British businesses and infrastructure”.

“Everything will go through the pools rather than through local authorities.

This will deliver the megafunds that have eluded the UK for too long.”

“As the UK’s largest pension provider, we warmly welcome today’s announcement. These proposals will help get more savers into larger schemes that can offer better value and more opportunities for productive investment”.