Chancellor Rachel Reeves is set to meet with leaders of Canada's 'Maple 8' pension funds in Toronto to explore a Canadian-style model for UK retirement funds.

Reeves aims to implement this 'Canadian style' pensions model to invigorate the UK economy and enhance investment strategies.

Canada's public sector pension schemes are consolidated into larger funds managed by professional investors, allowing for investments in riskier and long-term assets.

In contrast, the UK local government pension scheme (LGPS) is fragmented into 86 individually managed funds, holding £360 billion in assets and serving 6.5 million members.

Previous efforts to consolidate pension pools were initiated by former Prime Minister David Cameron in 2015, but progress has been slow, with only 39% of LGPS assets transferred to current pools.

Reeves is considering consolidating local government pension schemes to better utilize their £360 billion for economic investment.

Proponents of consolidation argue that pooling LGPS funds could lead to more efficient investments in growing businesses and infrastructure while saving at least £1 billion in fees currently paid to financial intermediaries.

Local councillors, who currently control pension investments, may resist giving up their authority, complicating the push for consolidation.

Critics of consolidation raise concerns about the potential impact on investment diversity and the legal and tax implications of transferring assets into larger funds.

The National Institute of Economic and Social Research (NIESR) emphasizes the necessity of public investment in transport and other sectors to stimulate economic growth.

NIESR criticized the government's decision to cancel infrastructure projects that could have spurred growth, highlighting the challenges of low investment and productivity.

Labour faces pressure to meet its ambitious economic growth targets amid scrutiny over its infrastructure project cancellations.