Rachel Reeves pledges £50BILLION pension investment in UK projects - despite rejecting 'Buy British' just days earlier

Rachel Reeves is finalising a £50billion-valued deal with pension funds to invest in British assets.The Chancellor is set to announce a new version of the Mansion House Compact, a voluntary investment agreement, which will require the biggest retirement providers to commit to a significant investment in UK projects.Under the new Compact, pension providers will commit to investing 10 per cent of savers' cash into unlisted assets by 2030.Half of this amount, approximately £50billion, will be specifically devoted to UK investments.This voluntary code follows several rounds of negotiations between key stakeholders - a first draft was circulated last week following what sources described as "sometimes tense" negotiations between Treasury Ministers, industry bosses and the City of London Corporation.Reeves is expected to announce the revamped compact this summer.The Chancellor is also planning cash ISA reforms to encourage investment - and could announce changes at her Mansion House speech in July.The original Mansion House agreement was signed by 11 providers including Aegon, Aviva, L&G, Nest, Phoenix and Scottish Widows.More funds are expected to join, with Fidelity, the People's Pension, TPT, Royal London, Willis Towers Watson and USS in discussions to sign the pact.LATEST ON PENSIONS:DWP urged to take action as Brits have 'concerning gap in awareness' over state pension agePensioners could be eligible for up to £4,300 in DWP benefit supportState pension disaster as 'basic' DWP payments fall short of 'minimum retirement standard'Investment in unlisted equities will primarily direct pension cash into infrastructure projects and other large developments - which have the potential to deliver higher returns for savers compared to traditional options.Some industry executives have raised concerns that these targets may conflict with their fiduciary duty to members.Others have highlighted the relative lack of transparency in private markets compared to traditional share markets.And the Treasury has acknowledged these concerns, agreeing that extra UK investment depends on the Government providing high-quality assets.But Reeves's fresh commitment to UK investment comes despite her failing to back a "buy British" campaign just days ago.MORE ON RACHEL REEVES:Rachel Reeves to hold UK-US trade war crunch talks in White House BUT Trump in 'no rush' for dealRachel Reeves urged to raise income tax for first time in 50 years as hike 'inevitable'Rachel Reeves's £40bn tax raid on pension savings could 'come at the expense' of workersLib Dem deputy leader Daisy Cooper had urged the Chancellor to commit to the campaign on April 8 "as part of a broader national effort to encourage people to buy British here at home".Reeves replied: "In terms of buying British, I think everyone will make their own decisions."What we don't want to see is a trade war, with Britain becoming inward-looking, because if every country in the world decided that they only wanted to buy things produced in their country, that is not a good way forward."Sir Keir Starmer's official spokesman later backed Reeves - and said there were no plans for the Government to launch a buy British campaign.