Caroline Norbury: Growing Good Growth? How pension consolidation could help the creative economy to thrive

Just a few weeks ago, Chancellor of the Exchequer Rachel Reeves MP rolled up her sleeves armed with a watering can in one hand and the pruning shears in the other. Budget Day – a chance to sprinkle a little here, trim a little there and hope for a garden that blooms. The UK Government has been taking stock of the landscape and let’s just say the soil isn’t exactly lush.  

Now, as the Chancellor prepares for her first Mansion House speech, there’s speculation about a bold pitch for pension consolidation. This isn’t just about tidying up pensions; it’s about sowing the seeds of long-term growth. By consolidating smaller pension pots into powerful collective funds, the Chancellor has an opportunity to unlock capital and direct it towards high-growth sectors, strengthening the UK’s economy and boosting long-term prosperity. For the UK’s Cultural and Creative Industries, this could signal a new era of sustainable, large-scale investment. 

A well-tended garden: pension consolidation as a catalyst for growth  

While pension consolidation aims to ensure security for future retirees, it also represents an opportunity to cultivate an economy that supports the grassroots as well as the headline acts. Consolidated funds could be the rain that nourishes a range of players – from independent creators, community arts programmes as well as the digital innovators that operate at the leaner end of the industry spectrum, among many others. This could mean targeted support for those who are frequently at the forefront of innovation but face hurdles in accessing conventional finance. A pension-backed approach could bridge that gap, providing stable investment that helps these sectors grow robustly. 

Beyond the showpieces: recognising the value of every plant 

In a thriving garden, it’s not just about having a few grand displays; it’s about cultivating an interconnected system where each green shoot plays a role in the ecosystem. The UK’s Cultural and Creative Industries are no different. A focus on pension consolidation could mean backing the whole landscape, encouraging growth that is not only economically fruitful but culturally enriching. Reeves’ Mansion House speech could set the groundwork for a model of investment that values community, cultural legacy and economic diversity as much as it values financial returns. 

Here’s to a flourishing creative future 

So, as we wait for the Chancellor to unveil her vision and the UK Government’s Industrial Strategy, here’s to the hope that pension consolidation becomes more than a financial strategy – because good growth doesn’t just happen by accident. It takes planning, it takes investment – and it takes the vision to look beyond the quick wins.