Image: Rachel Reeves wants to reform pensions. Pic: PA
Almost 90 local government pension pots will be grouped together, with defined contribution schemes merged and assets pooled together.
This is part of the government’s plan to increase economic growth through investing in infrastructure.
Pension schemes get greater returns when they reach around £20bn to £50bn as they are “better placed to invest in a wider range of assets”, according to the government.
This is backed up by evidence from Canada and Australia, the government argues – with Canada’s schemes investing four times more in infrastructure, and Australia three times more compared to the UK’s defined contribution schemes.
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Ms Reeves said it marks “the biggest set of reforms to the pensions market in decades”.
The chancellor added the changes would “unlock tens of billions of pounds of investment in business and infrastructure, boost people’s savings in retirement and drive economic growth so we can make every part of Britain better off”.
However, Tom Selby, the director of public policy at financial company AJ Bell, said: “There needs to be some caution in this push to use other people’s money to drive economic growth. It needs to be made very clear to members what is happening with their money.”
The government says the funds will be regulated by the Financial Conduct Authority and will need to “meet rigorous standards to ensure they deliver for savers”.
The Local Government Pension Scheme in England and Wales will manage assets worth around £500bn by 2030. These assets are currently split across 86 different administering authorities, with local government officials and councillors managing each fund.
Under the government plans, the management of local government pensions and what they invest in will be moved from councillors and local officials to “professional fund managers”.
This will allow them to invest more in assets such as infrastructure, supporting economic growth and local investment on behalf of the 6.7 million public servants, the government said.
Defined contribution pension schemes are set to manage £800bn worth of assets by the end of the decade.
There are around 60 different multi-employer schemes, each investing savers’ money into one or more funds. The government will consult on setting a minimum size requirement for these funds.
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Businesses cautious – but pensions sector backs plans
Businesses will need to be reassured that the government’s plans are watertight following the fallout from the budget, according to the trade group the Confederation of British Industry (CBI).
The CBI’s chief economist Louise Hellem said: “While the chancellor is right to concentrate on mobilising investment, putting pension reform to work for the government’s growth mission, unlocking investment also needs competitive and profitable businesses.
“With the budget piling additional costs on firms and squeezing their headroom to invest, the government needs to work hard to regain the confidence in the UK as a place businesses and communities can succeed.
“Pension schemes will want to operate within a UK economy that is prospering.”
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But key parts of the pensions sector gave their backing to the government’s plans, including Standard Life, Royal London, Local Pensions Partnership Investments and the Pensions and Lifetime Savings Association.
Deputy Prime Minister Angela Rayner said: “This is about harnessing the untapped potential of the pensions belonging to millions of people, and using it as a force for good in boosting our economy.”
Hayat Tahrir al Sham (HTS) went from a jihadist movement once aligned to al Qaeda to forming the official government of Syria.
It was a monumental transformation for them, their country and the wider Middle East.
But potentially too for British people who went to Syria– and who were stripped of their citizenship as a result, on the grounds of national security.
Tauqir Sharif, better known as Tox, went to Syria in 2012 as an aid worker. He was accused of being part of a group affiliated with al Qaeda, which he denies, and the then-home secretary Amber Rudd deprived him of his British citizenship in 2017.
“As of now, I am deprived of my UK citizenship but I’m not a convicted terrorist – and the reason for that is because we refused, we boycotted, the SIAC [Special Immigration Appeals Commission] secret courts, which don’t allow you to see any of the evidence presented against you,” he said.
“And one of the things that I always called for was, look, put me in front of a jury, let’s have an open hearing.”
Image: Tox went to Syria in 2012
HTS is still a proscribed terrorist organisation but the British government has now established relations with it.
Foreign Secretary David Lammy travelled to Damascus to meet the jihadist-turned-Syrian interim president – the man who swapped his nom de guerre of al Jolani for Ahmed al Sharaa.
Image: David Lammy shakes hands with Ahmed al Sharaa in Damascus. Pic: X / @DavidLammy
If the UK government takes HTS off the terror list, what does that mean for those who lost their citizenship after being accused of being part of it?
People who joined HTS are only a subset among the scores of people who have had their citizenship revoked – a tool the UK government has been quick to use.
According to a report by the Parliamentary Joint Human Rights Committee, the UK “uses deprivation of citizenship orders more than almost any country in the world”.
The peak of that was in 2017, and mainly in relation to Syria – especially in the case of people joining Islamic State, perhaps most famously Shamima Begum.
Image: Shamima Begum was stripped of her British citizenship on national security grounds
And because people cannot be made entirely stateless, and need to have a second nationality, or be potentially eligible for one, there are worries of racism in who the orders apply to.
Countries like Pakistan and Bangladesh offer dual nationality, whereas other nations do not. In 2022, the Institute of Race Relations said “the vast majority of those deprived are Muslim men with South Asian or Middle Eastern/North African heritage”.
Legal grey areas
Sky News submitted Freedom of Information requests to the Home Office asking for a breakdown of second nationalities of those deprived of citizenship, but was refused twice on national security grounds.
The independent reviewer of terrorism legislation, Jonathan Hall KC, told Sky News there are issues around transparency.
“I do think there is a problem when you have people whose relationship with the country that they’re left with is really technical and they may never have realised that they had that citizenship before and may never gone to that country,” he said.
“Me and my predecessors have all said, owing to how frequently this power is used, it should be something that the independent reviewer should have the power to review. I asked, my predecessor asked, we’ve both been told no, so I agree there’s a lack of transparency.”
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“We can’t sort of go through previous cases nitpicking through it, wasting time and money to bring it up to date,” he added.
“We can’t be naive because the intent to go out, the decision to go in itself is a huge decision for them. So it shows commitment when they’re there, they then, if they take an active participation in the organisations that they’ve been accused of joining, again, that involves training and perseverance and dedication to the cause.”
But those born and raised in Britain, who joined the same cause, and lost their citizenship as a result, might reasonably ask why that should remain the case.
Criminals face being banned from pubs, sports grounds and concerts under new government plans to give judges powers to pass tougher community sentences.
The new measures, which would apply to people in England and Wales, “should remind all offenders that, under this government, crime does not pay”, Justice Secretary Shabana Mahmood said.
Offenders’ freedom could also be curtailed with limits on driving, travel bans and restriction zones confining them to specific areas, the government said.
Similar measures could also apply to prisoners let out on licence, while drug testing would be expanded to include all those released, rather than just those with a history of substance misuse.
While judges are currently able to impose limited bans for specific crimes, such as football bans for crimes committed inside a stadium on match day, the new measures would allow for such bans to be handed down for any offence.
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12:16
Inside one of Britain’s most overcrowded prisons
The justice secretary said: “When criminals break society’s rules, they must be punished.
“Those serving their sentences in the community must have their freedom restricted there too.
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“These new punishments should remind all offenders that, under this government, crime does not pay.
“Rightly, the public expect the government to do everything in its power to keep Britain safe, and that’s what we’re doing.”
The proposals are part of the Labour government’s efforts to tackle overcrowding in prisons.
Back in June, it emerged that prisoners were to be transferred to lower security jails in an effort to ease overcrowding, as part of a new measure quietly unveiled by the government.
Sky News reported earlier this month how the prison system was close to collapse on a number of occasions between autumn 2023 and summer 2024, according to an independent review by former chief inspector of prisons, Dame Anne Owers.
The report said there was a systemic problem which has led to recurring prison capacity crises over the last 18 years.
Protesters have gathered across the country as groups demonstrated against asylum seeker housing and were met by anti-racism campaigners.
Demonstrations under the Abolish Asylum System slogan were held in England, Scotland and Wales, including in Bristol, Exeter, Tamworth, Cannock, Aberdeen, Mold, Perth, Nuneaton, Liverpool, Wakefield, Newcastle, Horley and Canary Wharf.
Counter-protests were also organised by campaign group Stand Up to Racism.
Image: Police officers scuffle with demonstrators during protests at Castle Park in Bristol. Pic: PA
In Bristol, mounted police separated the two groups in the Castle Park, with officers scuffling with protesters.
Police kept around 200 anti-immigration protesters draped in English flags away from roughly 50 Stand Up to Racism protesters in Horley, Surrey.
Image: People take part in a protest outside the Sheraton Four Points Hotel in Horley, Surrey. Pic: PA
One man, wearing a West Ham United football shirt, was held by police as he yelled: “You’re not welcome here, you’re not welcome here, you’re not welcome here” at anti-racism protesters.
Anti-immigration protesters also chanted: “Tommy, Tommy, Tommy, Tommy Robinson” in support of the far-right activist, whose real name is Stephen Yaxley-Lennon.
Image: A confrontation between a protester and a counter-protester outside the Sheraton Four Points Hotel in Horley, Surrey. Pic: PA
The anti-racism protesters chanted “say it loud, say it clear, refugees are welcome here” and held signs calling for solidarity and to “stop deportations”.
The Stand Up to Racism protesters were shepherded into a smaller area as they continued to chant: “No hate, no fear, refugees are welcome here”, which was met with “No they’re f****** not” from the other side of the street.
Image: People inside the hotel look at protesters outside the Radisson Hotel in Perth. Pic: PA
In Perth, protesters gathered outside the Radisson Hotel.
The anti-migration protesters held up signs with slogans such as “Perth is full – empty the hotels” and “get them out”.
Image: People take part in a counter-protest outside the Radisson Hotel in Perth. Pic: PA
Stand Up to Racism Scotland said it had achieved “victory” in Perth, with more than 200 gathering to oppose the Abolish Asylum System demonstration.
In Liverpool, a dispersal order was issued to try and contain the protests.
Saturday’s events come amid continued tension around the use of the hotels for asylum seekers.
Regular protests had been held outside the Bell Hotel in Epping, Essex, which started after an asylum seeker housed there was charged with sexually assaulting a 14-year-old girl on 10 July.
Hadush Gerberslasie Kebatu, 38, was charged with trying to kiss a teenage girl and denies the allegations. He is due to stand trial later this month.