.svg)
Lloyds Bank’s chief executive, Charlie Nunn, has likened Labour’s proposed pension reforms to economic controls used in communist China. He expressed concern over new powers that would allow Chancellor Rachel Reeves to compel pension funds to invest in the UK, calling it a form of "capital control."
In an interview with the *Financial Times*, Nunn said, “Mandating pension fund allocations is a form of capital control. I spent a decade working in China and other countries where such controls exist. It’s a very different model and poses challenges for an economy that sees itself as open.”
Reeves is urging pension fund managers to channel more money into UK-based investments like infrastructure and venture capital in order to stimulate economic growth. The Treasury has proposed legislation that includes a “backstop” power—enabling the government to enforce domestic investment if voluntary participation falls short.
However, Nunn cautioned that obligating funds to prioritise UK assets could clash with their responsibility to maximize returns for savers.
Other industry leaders share his concerns. Benoit Hudon, head of pensions advisory firm Mercer UK, warned in May that such mandates could ultimately lead to lower pension returns, undermining the policy’s core objective. Similarly, Aviva CEO Amanda Blanc said, “The red line is mandation. We don’t see that as necessary.”
Nunn noted that Lloyds already invests about £35 billion in UK assets.
His comments come ahead of Rachel Reeves’s upcoming Mansion House speech, where she is expected to unveil major changes to the UK’s pensions system, including adjustments to auto-enrolment policies.
