Rachel Reeves’ pension plan could damage the north, says ex-minister

Lord Jim O'Neill says small businesses could lose out from merger of local government schemes to create large fund

Government plans to create one of the largest pension schemes in the world from a merger of 87 local authority retirement funds could undermine investment in groundbreaking businesses across the north of England, according to former Treasury adviser Lord Jim O'Neill.

Innovative startup businesses, many of them spun out of universities in Manchester, Leeds and Sheffield, could lose out if the Treasury creates a big fund interested only in backing large companies, he said.