“My number one priority is economic growth,” Rachel Reeves told pension leaders at Downing Street this morning, as Aegon UK, NatWest Cushon and M&G moved towards an initial £200m raise for a new vehicle backing science and tech scale‑ups. The fund sits under the British Growth Partnership announced last year to steer pension capital into high‑growth companies.

The British Business Bank confirmed the trio as partners for a first close targeted by the end of this financial year (by 31 March 2026), with diligence completed and final terms and trustee approvals to follow. Investments are expected to begin in 2026.

Alongside the fund, the Bank plans a VentureLink initiative to publish more detail on its venture commitments and help pension teams build capability to invest. Notably for readers here, the Bank is headquartered at Steel City House in Sheffield, underlining the North’s role in delivering this agenda.

Today’s move builds on wider pension reforms. In May, 17 workplace providers signed the Mansion House Accord to direct at least 5% of default assets into UK productive finance-expected to free up more than £50bn by 2030. In October, the government backed the launch of the Sterling 20 group to coordinate larger pipelines with major schemes and insurers.

Why it matters here: South Yorkshire has a ready pipeline. The University of Sheffield’s Advanced Manufacturing Research Centre is partnering with Rolls‑Royce SMR on factory‑built nuclear components, a programme local leaders say can anchor thousands of skilled jobs if contracts proceed. Patient capital at scale is exactly what projects like this need.

On Teesside, SeAH Wind’s giant monopile plant has taken total investment at the Freeport site to about £900m, while Dogger Bank’s operations base at Port of Tyne is ramping up as the world‑scale wind farm progresses toward full operation. Funds with a long horizon can help grow these supply chains across the North East.

Further north, semiconductor maker Pragmatic has built out its Durham park. Northern Gritstone joined the company’s £162m Series D last year and highlights Pragmatic’s roots in Manchester‑originated IP-evidence of a maturing regional supply chain the new fund could co‑invest alongside. Northern Gritstone itself now has £362m of permanent capital.

Finance and tech outside the capital are on the rise, too. Whitecap’s 2025 study counts close to 400 fintech firms across the North, nearly 20,000 direct jobs and £1.5bn in GVA today, with the sector on track to reach £6bn by 2030 if momentum holds-another clear home for long‑term capital.

How the fund will work matters. The Bank says British Growth Partnership Fund I will invest directly on a fully commercial basis, co‑investing alongside its network of managers and independent of ministers, using its position as the UK’s most active late‑stage investor to crowd in further capital.

Ministers want this money to back clean energy, fintech and medical technology among other priorities, and the Treasury says British Business Bank activity could help draw in at least £2bn from pension funds over the next five years to support hundreds of firms. For savers, the pitch is better long‑term returns; for founders, thicker scale‑up pipelines.

All parties stress today’s step is still subject to approvals. The Bank is targeting a first close by 31 March 2026, with investments starting in 2026-so northern founders should see practical opportunities emerging next year if timelines hold.

This all lands a week before the 26 November Budget, when the Chancellor will set the wider fiscal frame. Expect more detail on pensions reform and productive finance as the government leans into growth.