A final report on the government's proposed pension reforms will be published in the spring, chancellor Rachel Reeves said during a speech on economic growth on Wednesday morning.

In a speech at a Siemens facility about economic growth on Wednesday, Reeves pointed to the Mansion House pension consolidation proposals, saying there will be “larger, consolidated funds, which have much greater capacity to invest in high-growth British companies at the scale that we need them to”, adding: “The consultation on these reforms is already complete, and the final report will be published in the spring.”

Separate consultations on defined contribution consolidation and on reforming the Local Government Pension Scheme closed in mid-January. 
 

   

   
The spring timeline appears to be a common thread across several initiatives. A planning and infrastructure bill is also due to be introduced in the spring, while a 10-year infrastructure strategy, for which the government is seeking investor views, is due in June, along with the Spending Review. 
   
Reeves reiterated Tuesday’s announcement on defined benefit surplus, on which the government will again share details in the spring, when it is due to respond to the previous government’s DB consultation.   
   

    

“We have plans to go further, whilst always protecting the important role that pension funds play in the gilts market. We will introduce new flexibilities for well funded defined benefit schemes to release surplus funds, where it is safe to do so, generating even more investment into some of our fastest-growing industries,” she said.  

Industry voices mainly commented on the DB surplus announcements. Hymans Robertson partner Calum Cooper welcomed the plans as a bold step that could support economic growth for future generations, but cautioned any changes must meet the needs of pensioners first.

He added: “We encourage the government to continue to be bold and creative and think about how Phase 2 of the delayed Pensions Review can reduce our tax burden and further stimulate sustainable growth and better pensions: it can be done.”

The DB surplus proposals were also welcomed by senior consultant at XPS Group, Tom Froggett, who claimed DB surplus flexibilities have the potential to release up to £100bn of value over the next decade.

 

“The key focus now shifts to how the government will implement this safely and effectively," he added. "In our view there are two key elements to this - first, a statutory override to provide the ability for surplus to be released subject to certain safeguards, and second, clear regulatory guidance to provide trustees with a blueprint for running DB schemes on to build and use surplus safely.”