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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Thank you so much. I'm pleased to be joined by

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Speaker 2: the Chancellor herself, Rachel Reeves and Chancellor, I want to

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Speaker 2: start with this conflict at the heart of this policy

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Speaker 2: between maximizing returns for pension funds and boosting UK economic growth.

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Speaker 2: Clearly we'd all love to see both, but what's your

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Speaker 2: top priority.

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Speaker 1: Well, we do need to achieve both, and we improve

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Speaker 1: returns for savers in the UK. And I know that

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Speaker 1: people are every month that's save for their pension making

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Speaker 1: big sacrifices in doing that, and I want them to

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Speaker 1: know that they're getting the very best return on that money,

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Speaker 1: which means a more diversified portfolio, including investing in fast

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Speaker 1: growing businesses and also in infrastructure. And what's welcome today

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Speaker 1: is that at seventeen companies representing ninety percent of active

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Speaker 1: pension savers have signed this accord, which means that now

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Speaker 1: ten percent of what they invest will be in these

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Speaker 1: private assets, and for the first time ever a proportion

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Speaker 1: of those half of those will be in UK assets.

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Speaker 1: That's good for the UK economy, more money into the

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Speaker 1: UK economy, but it's also good for savers.

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Speaker 2: So if your confidence is good for savers and for

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Speaker 2: the economy. Why not mandate these pension funds to invest

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Speaker 2: in UK assets.

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Speaker 1: We don't need to mandate them if people are willing

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Speaker 1: to sign a voluntary accords and today we've shown that

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Speaker 1: that is possible, with seventeen businesses representing ninety percent of

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Speaker 1: active savers signing up voluntarily to this because they know

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Speaker 1: that it is in the interests of the savers whose

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Speaker 1: money they invest. The challenge up until now has been

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Speaker 1: that no company wants to go first, and so this coordination,

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Speaker 1: that's the role that government can play. And the work

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Speaker 1: that myself and our Pensions Minister Torsten Bell have done

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Speaker 1: is to bring the industry together in a way that

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Speaker 1: hasn't been achieved before, to ensure that the will move

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Speaker 1: together and send a very clear signal that the best

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Speaker 1: way to deliver for savers is to have a more

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Speaker 1: diversified portfolio.

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Speaker 2: But if they don't comply, because a one year of

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Speaker 2: view of the original Mansion House Compact showed only limited

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Speaker 2: progress in terms of assets invested, is there a point

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Speaker 2: at which you would mandate pension funds to invest in

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Speaker 2: UK projects.

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Speaker 1: I'm never going to say never, but I don't think

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Speaker 1: it's necessary because what we saw today was as seventeen

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Speaker 1: pension funds representing the vast proportion of pension savers in

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Speaker 1: the UK, deciding voluntarily to do this, and what they

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Speaker 1: wanted was a government that was willing to corral and

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Speaker 1: bring together the industry to ensure that they can best

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Speaker 1: ensure that their savers, their customers are better served. And

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Speaker 1: so I'm really pleased with what we've been able to do.

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Speaker 1: It shows that you don't need to use mandation if

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Speaker 1: you can work together, have that compelling argument. And also,

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Speaker 1: crucially this is so important, have the pipeline of investments

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Speaker 1: because another thing that pension funds have said to me

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Speaker 1: is would love to invest more in private assets, would

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Speaker 1: love to invest in infrastructure if we had that pipeline

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Speaker 1: of projects, and that's what our ten year infrastructure plan

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Speaker 1: will enable. There's a number of investable projects, whether that's

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Speaker 1: the Lower Tends crossing, whether it is investment at Heathrow

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Speaker 1: or Euston Station, or projects around the country from a

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Speaker 1: rail in the north to gigafactories. There's so many investments

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Speaker 1: that can be made.

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Speaker 2: Gives them that why focus on private markets when the

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Speaker 2: London public market needs such help. There's a stark valuation

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Speaker 2: gap between the UK and the US. Why not help out.

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Speaker 1: Well, of course aim shares are included in this, so

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Speaker 1: it's not the case that no listed equities are included

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Speaker 1: in the announcements today. But what startup and scale up

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Speaker 1: businesses say to me is that they end up listing

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Speaker 1: abroad because they raise capital abroad. And one scale up

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Speaker 1: business is a really successful UK scale up business said

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Speaker 1: to me was that every time that they raise money,

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Speaker 1: they've become a bit more American. And so the point

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Speaker 1: here is that our fast growing businesses will be able

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Speaker 1: to raise money through that long term investment from pension funds,

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Speaker 1: and therefore we'll stay in the UK and we'll list

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Speaker 1: in the UK. So this is good for UK stock

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Speaker 1: markets too.

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Speaker 2: Well, you said never say never on mandation, would there

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Speaker 2: ever be mandating to invest in UK listed equities.

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Speaker 1: I think that what we've done today shows that we

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Speaker 1: don't need to use mandation. There's a willingness from businesses

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Speaker 1: to do this voluntarily in line with their fiduciary duties

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Speaker 1: to ensure best value for their savers, and today just

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Speaker 1: shows what government and business can do working in partnership

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Speaker 1: delivering for working people who in the end a got

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Speaker 1: to be forefront of our minds because it is their

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Speaker 1: money that is being saved, their money put aside for retirement,

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Speaker 1: and we've got a shared interest government, business and most

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Speaker 1: of all on behalf of working people to ensure that

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Speaker 1: that money works for them.

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Speaker 2: Chance if we can turn to another issue top of

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Speaker 2: mind here in the city, are you concerned that your

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Speaker 2: non dom tax changes will cost more than they raise? Now?

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Speaker 1: I'm not concerned. We've had numbers produced by the Independent

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Speaker 1: Office the Budget Responsibility who forecasts a combination of those

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Speaker 1: rules but also the temporary repatriation facility will bring in

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Speaker 1: money for the exchequer. When I became Chancellor last year,

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Speaker 1: have faced a big black hole in the public of finances.

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Speaker 1: We needed to take a media action to deal with that.

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Speaker 1: We made a manifesto commitment to ensure that non doms

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Speaker 1: do pay their fair share of tax in the UK.

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Speaker 1: But combined with the temporary repatriation facility, which makes it

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Speaker 1: easier for people to bring money into the UK without

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Speaker 1: facing punitive tax, is what has convinced the Officer the

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Speaker 1: Budget Responsibility and other forecasters to say that this will

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Speaker 1: raise money for the exchequer, money that's much needed to invest,

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Speaker 1: for example, in defense.

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Speaker 2: But the obr's modeling assumes that non doms won't leave

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Speaker 2: as a result of your They've admitted that it's very uncertain.

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Speaker 1: The Office of a Budget Responsibility do forecast that a

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Speaker 1: number of non doms will leave for the country. And

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Speaker 1: indeed every year you have huge flows of people in

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Speaker 1: and out of the country. This is a highly mobile

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Speaker 1: group of people. But as well as people leaving the

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Speaker 1: UK for a whole variety of reasons, we have every

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Speaker 1: year thousands of people, including some of the wealthiest people,

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Speaker 1: come to the UK because they can see that this

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Speaker 1: is a great place to do business, a great place

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Speaker 1: to grow a business. And you saw yesterday in the

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Speaker 1: Immigration white Paper a real shift in our policies around

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Speaker 1: immigration towards higher skill, our higher value people coming into

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Speaker 1: the UK to better support our economy and Chansa.

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Speaker 2: I was interested to hear the Prime Minister saying that

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Speaker 2: immigration doesn't boost economic growth. That directly contradicts the OBR.

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Speaker 2: So who's right, the Prime Minister or the OBR.

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Speaker 1: Course, immigration can be good for the UK economy. We

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Speaker 1: can get the right type of immigration just bringing in

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Speaker 1: more low skilled workers. It is not going to make

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Speaker 1: people here in Britain better off and that is the

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Speaker 1: number one priority of this government. We do need to

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Speaker 1: get the numbers down. More than almost a million people

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Speaker 1: net migration is a city the size of Birmingham coming

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Speaker 1: into the UK every year. That's clearly not sustainable for

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Speaker 1: our public services, for our housing. And when we've got

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Speaker 1: nine million people in the UK who are economically inactive

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Speaker 1: of working age, it's quite clear that our priority has

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Speaker 1: got to be, as it is through our welfare reforms,

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Speaker 1: of getting people back into work by giving them the

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Speaker 1: support and training that they need.

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Speaker 2: If more people doesn't necessarily equal more growth, does that

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Speaker 2: rule out the government agreeing to a slim down version

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Speaker 2: of the EU's youth mobility scheme.

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Speaker 1: Well, we've got the EU UK Summit next Monday. Negotiations

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Speaker 1: are ongoing ahead of that. But we were clear in

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Speaker 1: our manifesto there will be no return to free movement

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Speaker 1: under this labor government. You can see that. Finally we've

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Speaker 1: got a government that is trying to get a group

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Speaker 1: of uncontrolled migration. But of course we want Britain to

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Speaker 1: be a place that welcomes entrepreneurs researchers the best talent,

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Speaker 1: because that is something that makes our country a great place.

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Speaker 2: Chancellor of the Exchequer Rachel Reeves, is always a pleasure

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Speaker 2: to talk to you. Thank you so much for making

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Speaker 2: time and you