Andy Burnham scaleup fund targets £1bn for UK innovators
Prime Minister Andy Burnham has backed a proposed Andy Burnham scaleup fund, a £1 billion UK Scale-up Fund that major pension providers say they will explore to channel institutional capital into high-growth British science and technology firms, aiming to boost returns for savers while helping innovative companies scale, commercialise and stay in the UK.
Key Takeaways
- A consortium of large UK pension providers has committed to explore a first-of-its-kind UK Scale-up Fund with a £1 billion ambition.
- The vehicle would target scaling science and technology businesses, seeking strong long-term returns for members.
- The British Business Bank and the Office for Investment are supporting the consortium as it develops the plan.
- Burnham framed the move as a way to “reindustrialise Britain” and keep growth, jobs and profits at home.
- Market engagement to appoint a fund manager is due to begin shortly.
What is the Andy Burnham scaleup fund?
On 27 July 2026, a group of major UK pension providers announced plans to explore a dedicated investment vehicle for scaling British companies. Officials and industry leaders call it the UK Scale-up Fund. Coverage and government messaging link the launch to Burnham’s growth agenda, which is why many readers are searching the phrase andy burnham scaleup fund.
According to a GOV.UK press release, the fund would connect institutional capital with founders and venture managers driving UK innovation. The stated aim is to help firms commercialise new technologies and create skilled jobs while delivering returns for pension savers.
The proposal is not a finished product. Providers have announced a commitment to explore establishing the vehicle, with an ambition of sufficient scale to pursue the best opportunities in British science and technology.
Who is backing the £1bn pension initiative?
The consortium spans defined contribution, defined benefit and Local Government Pension Scheme funds. Named voices in the announcement include Railpen, Nest, LPPI, LGPS Central and Border to Coast. Nest’s chief executive noted the scheme invests on behalf of more than 14 million members.
The British Business Bank is working with the providers to support a launch and intends to invest in partnership with the group. The Office for Investment is also backing the exploratory work. Asset managers will be invited to engage, with contact routed through the British Business Bank.
Chancellor John Healey said Britain creates strong companies but does not do enough to grow them with British capital. Business Secretary Jonathan Reynolds called the pension push a vote of confidence in UK innovation. For related BlasterPost coverage in this hub, see our True Crime & Unsolved Mysteries category.
Why does Burnham say it will reindustrialise Britain?
Burnham argued the fund would unlock “good growth in every postcode” by pairing pension money with entrepreneurs and technologies that can reindustrialise Britain and create future jobs. He said that means more opportunities for working people, stronger returns for savers, and more businesses choosing to start, grow and stay in the UK.
Industry leaders echoed the scale-up gap. LPPI’s Chris Rule said many scaling firms struggle to access the capital they need. Railpen’s Andy Bord described the UK Scale-up Fund as a compelling chance for patient capital to help companies grow while seeking attractive returns.
Healey noted the UK has the world’s third-largest venture capital market and said the £1 billion fund would mean more British money behind British scale-ups. A manager-appointment market engagement process is expected to start soon. Until then, the headline figure remains an ambition tied to a vehicle still under exploration.