Trade bodies warn of “market distortion” in wake of Reform’s Sovereign Wealth plan

Mace | 25th February 2026 | Politics, Trade Associations
Richard Tice is Reform's spokesperson for trade and business (Photo by Christopher Furlong/Getty Images)
Richard Tice is Reform's spokesperson for trade and business (Photo by Christopher Furlong/Getty Images)

As Reform's 'Shadow Cabinet' begins to develop, Richard Tice sets out the party's policy on a British sovereign wealth fund plan.

A leading sustainable finance body has hit out at Reform UK’s proposal to force local government pension schemes to invest in the UK, warning the plan could harm retirement savings and destabilise financial markets.

The UK Sustainable Investment and Finance Association (UKSIF) CEO James Aelxander said Richard Tice’s plans, which form part of Reform’s broader “sovereign wealth fund” agenda, risk creating asset bubbles and delivering lower returns for pensioners at a time when many savers are already facing a retirement income crisis.

He went on to say that the proposals “run the risk of distorting markets” and could leave workers worse off, particularly those approaching retirement age who have little time to recover from any shortfall in their pension pot.

“This stands to affect workers across the economy, including those now close to leaving employment,” Alexander said.

The warning adds to growing scrutiny of Reform’s economic platform as the party seeks to present itself as a credible force in British politics. Tice’s sovereign wealth fund proposal has been pitched as a way of channelling pension capital into domestic investment, but critics argue that mandating where funds are invested cuts across the fiduciary duty pension managers owe to their members.

Rather than compelling investment, UKSIF urged policymakers to focus on creating attractive domestic opportunities, …

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