The government has revealed plans for a Long-term Investment for Technology and Science (Lifts) scheme, which will aim to support defined contribution (DC) investment into "innovative UK companies".

In the Spring Budget, the government stressed the need for companies across high growth sectors to have access to sufficient finance to be able to start, scale and stay in the UK, arguing that it will be "critical" to unlock DC pension fund investment.

"To develop the next generation of globally competitive companies that grow and list in the UK, and to bolster the retirement incomes of millions of ordinary people, it will be critical to unlock DC pension fund investment into the UK’s innovative firms," it stated.

"The government has already taken important steps to address barriers and to accelerate progress further. The government will work closely with industry and regulators to bring forward an ambitious package of measures by the autumn."

As part of this, the government is inviting feedback on the design of a Lifts scheme, which will aim to support DC investment into "innovative UK companies", by providing a "key stimulus for industry to create the structures needed to mobilise DC scheme investment".

The Chancellor, Jeremy Hunt, also confirmed that further changes could be in store for the Autumn Budget, stating: "I will return in the Autumn Statement with a plan to deliver that. It will include measures to unlock productive investment from DC pension funds and other sources, make the London Stock Exchange a more attractive place to list, and complete our response to the challenges created by the US Inflation Reduction Act."

The government also suggested that it would "lead by example", by pursuing accelerated transfer of the £364bn Local Government Pension Scheme assets into pools to support increased investment in innovative companies and other productive assets.

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