Economic Secretary to the Treasury Delivers Keynote Address at UK Private Capital Conference

Good morning, everyone. I genuinely appreciate the invitation to speak with you here in Paternoster Square today.

It is undoubtedly a fitting venue for this summit. For centuries, this part of the city has been a hub where ideas, commerce, and capital converge. Just a short distance away at St Paul’s Cathedral, this area has been rebuilt time and again, overcoming war, fire, and economic upheaval. Each time, it has emerged stronger and more prosperous.

For me, this serves as a crucial reminder that economic progress stems from backing innovative ideas, nurturing businesses, and directing investment into opportunities. This is precisely why private capital is so vital. Behind every investment lies the potential to help a company grow, develop new technologies, create jobs, and ultimately contribute to the economic growth that enhances living standards across the nation.

Transition of Leadership and Commitment to Growth

Much has transpired since March, including the appointment of a new Prime Minister and Chancellor. I am thrilled to return as Economic Secretary to the Treasury, and I consider it a privilege to work once more with all of you in a sector that fuels growth and opportunity throughout the country.

As the world’s second-largest asset management hub and the most international centre for asset management, we possess a wealth of expertise and influence that we rightly take pride in—an enviable position for many others. I was particularly struck by the theme of this summit: ‘Investing for a Better Economy’. This encapsulates precisely what your sector strives to achieve. Each day, you make critical decisions regarding capital allocation, which businesses to support, and which innovations to scale, ultimately shaping the UK economy for years to come. Your work is both invaluable and impactful.

I am genuinely excited to collaborate with you to ensure that the UK remains one of the premier locations in the world for managing investments and delivering optimal outcomes for savers and investors nationwide.

Our Vision for Investment in the UK

Today, I wish to convey a straightforward message: we want you to invest in Britain. We want you to grow British businesses and assist in building the future of our nation. In this endeavour, the government will stand as your partner—an effective and supportive partner.

To elaborate, I will discuss the past, examine the present, and importantly, look towards the future of the sector. We have initiated various reforms to support growth and innovation and must seize the trends and opportunities presented by technology and AI to ensure Britain maximises its competitive advantage and fully realises the immense potential of our businesses.

This year’s Mansion House speech provided an opportunity to assess our progress against the Financial Services Growth and Competitiveness Strategy launched last year—a strategy that the new Chancellor remains fully committed to.

Strengthening the UK’s Position in Global Finance

In 2025, we outlined a clear plan to reinforce the UK’s status as a leading global financial centre, ensuring that financial services contribute to growth across the country and within our real economy.

At this year’s Mansion House, we highlighted the significant progress made in implementing that plan. Key measures include promoting consumer participation in capital markets, enabling more individuals to achieve the long-term financial security that investing can provide.

We also welcomed the launch of the industry-led ‘Invest for the Future’ campaign, aimed at promoting the advantages of investing to the public, alongside an industry-led review focused on improving the communication of risks and benefits associated with investments.

The Investment Management Taskforce’s Technology Working Group has been diligently addressing how to enhance the digital retail investment ecosystem. Legislative advancements, such as the Financial Services and Markets Bill, have been introduced to Parliament, paving the way for crucial reforms committed to in our strategy, including updates to the Senior Managers and Certification Regime (SMCR) and Financial Ombudsman reforms.

Collaboration Between Government and Industry

This year’s Mansion House was not merely an occasion for reflection; it was also a platform to propel the strategy forward, facilitating further growth and investment while fostering a more competitive sector. Central to this opportunity is the collaboration between government and industry, which is why I am particularly pleased to be here today. I understand that you are gathering experts from across the sector to share insights on where the UK excels and where we can push further.

The government is committed to establishing the UK as a world leader in managing private market assets, recognising its fundamental role in enabling such success. We have been making decisive strides to enhance the regulatory and business environment in which you operate.

This includes the draft Statutory Instrument (SI) laid in July, proposing reforms to the Alternative Investment Fund Management Regulations. We are collaborating with the Financial Conduct Authority (FCA) to streamline this regime, making it more effective, proportionate, and conducive to asset managers operating in Britain.

Addressing Risks in a Growing Sector

Moreover, I would like to mention the ambitious reforms for venture capital (VC) fund managers we are implementing to ensure regulations align with the activities undertaken by VC firms. However, it is essential to acknowledge that any burgeoning sector, including the private markets, brings with it new risks. You are likely aware of the ongoing discussions in the media regarding increased global scrutiny on vulnerabilities.

This year, G7 Finance Ministers and Central Bank Governors recognised the potential risks within the private credit ecosystem, including the connections to banks and insurers, which necessitate ongoing monitoring. I would like to extend my gratitude to everyone in this room for your participation in the Sectoral Working and Engagement Strategy (SWES); your involvement is crucial and appreciated.

The insights gleaned from SWES will be invaluable for the government, regulators, and all participants, as we aim to develop a deeper understanding of the sector and the risks involved.

Reforming the Pensions System

Turning our attention to pensions, we are advancing significant reforms. We have collaborated with the industry on ambitious initiatives such as the Mansion House Accord and implemented substantial changes through the Pension Schemes Act, promoting consolidation within the sector, fostering long-term investment, and delivering improved outcomes for savers.

We are encouraged by the early successes of the Accord, including new investment announcements and firms enhancing their in-house capabilities while exploring new pathways into private markets. Building on the foundations established by the investment review, our focus is now shifting towards ensuring adequacy at the individual level.

A pensions system that serves savers effectively can unlock productive investment in the UK economy, bolstering growth while enhancing retirement outcomes. The first Pensions Commission is widely regarded as one of the most successful examples of long-term policymaking in recent times, having simplified the State Pension, provided a strong retirement foundation, and introduced automatic enrolment, which has brought nine out of ten eligible employees into pension saving.

Addressing Undersaving for Retirement

Nonetheless, we recognise that far too many individuals are still not saving adequately for retirement. This is precisely why the government has established the second independent Pensions Commission, tasked with reviewing saving levels and identifying necessary changes for a fair and sustainable pensions system.

The Commission has published its interim report, diagnosing undersaving levels across the population. Alarmingly, it indicates that 40 per cent of working-age adults—approximately 15 million people—are on track to fall short of retirement adequacy benchmarks.

Reflecting on the success of the first Commission, it is clear that their ability to engage with the industry and build consensus was key. The current Commissioners recognise that this is critical for achieving durable reform and will be keen to hear your perspectives. I encourage all of you to respond to their call for views regarding the interim report and the challenges that lie ahead.

Embracing the Future of AI

Of course, I must return to the topic of artificial intelligence (AI), as no contemporary speech would be complete without mentioning it. AI has frequently made headlines, often for less than favourable reasons. Yet, alongside the efforts to ensure financial stability—an essential component of the equation—AI represents one of the most powerful drivers of future productivity. This is why, at this year’s Mansion House, we articulated our ambition for the UK to become the fastest adopter of AI within the G7, ensuring that we not only develop world-leading technologies but also harness the economic benefits through enhanced productivity, stronger firms, and better jobs.

Subsequent to this, at London Tech Week, the then-Chancellor outlined our delivery on the four key areas discussed in her Mais Lecture on AI and innovation: infrastructure, companies of the future, adoption, and managing the transition.

The government has appointed two AI Champions for financial services, who have developed an adoption plan published in July. This plan focuses on fostering innovation while upholding high standards of consumer protection, operational resilience, and trust in the financial system.

The recommendations outlined in the Adoption Plan are being actively pursued as we work with industry and regulators to maintain momentum and ensure the UK financial services sector remains a global leader in the safe, responsible, and effective utilisation of AI.

Conclusion and Call for Collaboration

The potential benefits of AI extend beyond mere efficiency; they align with our shared goal of cultivating a more competitive financial services sector that attracts global capital, supports innovation, and drives economic growth throughout the country. I will refrain from delving deeper into AI now, as there is much more I