Market Spotlight Report: Issue 2 | Opportunities for pension fund investment limit changes

The March 2022 Market Spotlight Report by Bruntwood SciTech brings to light new research showing that rule changes to pension investment would level-up regional science and technology investment by billions.

The Market Spotlight Report provides a quarterly update on the impact of the UK science and technology sector including the overall size and value of the sector, business and economy trends, PE and VC investment trends and science and technology sector property market changes.

The featured topic in issue 2 of the report provides a closer look at what opportunities the UK government and pension investment reform will have for the sector. Two reforms - one already enacted, the other under consultation – would unlock billions of pounds of new, domestic private equity and VC investment into the country’s tech and science industries, according to our research. Key findings of the report show that plans to relax fee limits and new rules to ease investment into long-term illiquid assets would generate 500 new investments each year and a £5.26bn annual boost to UK science and technology investment by 2030.

But if more money flows in, it can’t just be along the same rivers of capital that lead into the Golden Triangle today – although inevitably, and rightly, more will. Today’s tributaries that spread into the regions across the UK need to become rivers themselves too. Our research suggests that this will happen and is underway already through long term private investment,
but with more targeted public investment into the right places we can accelerate both economic and innovation opportunities.

This report explores the potential medium-to-longer term effects of these changes, such as the potential impacts on the number of projects, revenues, output (GVA) and employment growth potential that the change in policy could enable.

Download the full report to read more.