Nearly half (44 per cent) of pension professionals think new tax reliefs or financial incentives would be the most effective way for the government to deliver greater pension investment in UK productive assets, a poll from the Society of Pension Professionals (SPP) has found.

The survey, conducted during a recent SPP event, found that a further 23 per cent thought setting the environment for scheme run-on was the best single step the government could take, while 13 per cent chose clarifying and/or extending fiduciary duties.

In contrast, further consolidation of schemes and/or assets was cited by less than a tenth (8 per cent) of respondents, as was creating more permisive planning and related regimes, while just 4 per cent thought the government should prioritise using the National Wealth Fund for funding, protection, liquidity.

The SPP highlighted the findings as demonstration of the strong support for tax reliefs or similar financial incentives, which also mirrors findings from the SPP Annual Conference in September 2024, which also found strong support for tax reliefs as a means of encouraging UK investment.

Commenting on the findings, SPP Investment Committee chair, Simon Daniel, said: “It was interesting to see such a clear indication again that the industry considers tax reliefs or similar financial incentives to be the single most effective step the government can take to dial-up pension scheme investment in UK productive assets.

"Of course, there are other ingredients available to implement the policy intent, and in reality more than one will be used, but the SPP has consistently found that financial carrots should be prime amongst them.”

Although consolidation has been a key focus amid the government's pension investment review, industry experts previously warned that whilst scale can deliver benefits, like reduced costs and regulatory simplicity, it is not a silver bullet for stronger returns

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