Pensions report cuts Reeves’ planned growth funds from £160bn to £11bn

Chancellor had anticipated surpluses from final salary schemes would boost investment in UK economy

Plans to invest 160bn of surplus funds from final salary pension schemes to boost the UK economy over the next 10 years have been dealt a blow by a Whitehall assessment that found there was likely to be little more than 11bn available to spend.

In a knock to Rachel Reeves's growth agenda, a report by civil servants at the Department for Work and Pensions (DWP) found that the expected surpluses in occupational schemes would be used by businesses to offload their pension liabilities to insurance companies.