Key takeaways

Key takeaways

Mansion House speech 2025

In her second Mansion House speech as Chancellor on Tuesday 15 July, Rachel Reeves set out a bold vision for revitalising the UK economy and capital markets. The proposed reforms aim to speed up and simplify the process for companies seeking to go public. This includes changes to the listings regime and the creation of a new securities platform for private companies. The Chancellor also outlined plans to cut through regulatory red tape, to make the UK a more competitive, responsive and attractive environment for financial services.

One of the key focuses was on unlocking long-term capital, particularly from pension funds and individual investors. Through the Mansion House Accord, UK pension schemes are being encouraged to allocate more money to private market investments with a commitment to invest in UK-based companies. Retail investment is also being encouraged, with the potential for ISAs to be opened up to longer-term, higher growth funds and a proposed national campaign next April to promote share ownership.

Unlocking UK growth

The Chancellor emphasised the need to channel more UK pension fund capital into domestic investments, particularly in the infrastructure, clean energy and high-growth sectors such as technology and life sciences. 

In the current state-of-play, much of the UK’s substantial pension fund capital (estimated at over £2.5 trillion) is invested overseas, or in low-risk, low-return assets such as government bonds. The proposed reforms signal a clear policy direction to redirect a portion of this capital into long-term, productive investment within the UK, with the broader aim of stimulating domestic growth. 

The Chancellor also reaffirmed government backing for the Mansion House Accord, a voluntary, non-binding commitment by major pension providers to:

• Allocate at least 10% of defined contribution (DC) default funds to private markets by 2030; and 

• Ensure at least 5% of those investments are in UK-based private markets, assuming suitable opportunities exist.

While the Accord remains voluntary, the political momentum behind it suggests that non-participation may attract scrutiny. The Chancellor also confirmed that the Pension Schemes Bill will remain in place but indicated that the government does not anticipate needing to use the legislation’s mandate powers for pension funds, citing expected voluntary alignment with investment objectives.

Revitalising the UK IPO market

Against the backdrop of the UK’s subdued IPO activity and growing global competition, the Chancellor outlined a reform agenda aimed at restoring London’s competitiveness and unlocking domestic capital for growth. These included:

• the announcement of the launch of a new Listings Taskforce, which will work to reduce the “red tape” around initial public offerings (IPOs) and aim to cut approval times and simplify documentation;

• support for the launch of a new private securities market (called PISCES) - not yet operational but expected to debut later this year - which will allow private companies to have their shares traded through structured trading windows, without going public. Further details on PISCES can be seen here.

These reforms seek to make the IPO process quicker, cheaper and more appealing by accelerating public listings, streamlining prospectus requirements and reducing the timeframes for IPO approvals.

The Chancellor also outlined a package of reforms (called the “Leeds Reforms”) to reduce some of the regulatory pressure on banks and financial services firms. These include mandating faster FCA/PRA response times for authorisation, meaning companies may benefit from quicker regulatory decisions.

The reforms also focus on encouraging more retail investors (everyday savers and pension holders) to invest in equity markets. This includes the backing of a UK campaign (involving major banks and the London Stock Exchange) to promote retail investment, potentially broadening the investor base for UK-listed companies and improving the long-term support these companies get from the market – especially after IPO. The campaign is still in the early stages, and details are limited so far.

Together, these reforms ultimately aim to make London a more attractive destination for listings, reduce friction for issuers, and broaden access to capital.

Unlocking pension fund capital

"In too many areas, regulation still acts as a boot on the neck of businesses…

…choking off the enterprise and innovation that is the lifeblood of economic growth.”

The Chancellor also emphasised the need for regulatory and operational reforms to make it easier for pension funds to invest in illiquid assets such as infrastructure and venture capital, noting that current regulations and rules make it difficult for pension schemes to invest in private markets due to an over-prioritisation in risk aversion. 

The speech indicates that the Government now want to roll back some of these constraints to unlock capital for UK growth sectors and increase institutional demand for UK equity offerings.

This presents an opportunity for UK-based growth companies (including start-ups and venture capital firms) particularly in the clean energy, infrastructure, life sciences and other high-growth sectors – who may gain access to new, and significant, sources of capital from pension funds under the proposed reforms. 

What this could mean for UK companies

The Mansion House 2025 speech marks a pivotal moment in the UK’s economic policy narrative. The message is clear - the legal and regulatory framework is shifting to support a more domestically focused investment strategy.
For UK-based companies, particularly those looking to grow or raise capital, this shift in policy could allow those looking to list on the London Stock Exchange to benefit from faster approvals, reduced compliance costs, and a more liquid and broader investor base – both institutional and retail.

For private companies, as pension funds and ISAs are directed towards more UK-based investments, more long-term, domestic capital could become available to support business expansion, innovation and infrastructure projects. 

The aim is that companies should find it easier to raise money in the UK, stay in the UK, and attract long-term investors – all in a more stable and predictable economic environment. 

Navigating this transition will require not only technical expertise but also strategic foresight. With these changes already in motion, now may be the time for companies to assess how they can position themselves to benefit.