A consortium of some of the UK’s largest pension providers have committed to exploring the establishment of a first-of-its-kind vehicle dedicated to investing in scaling UK science and technology businesses.

The potential £1 billion fund would seek to deliver strong long-term returns for pension providers and their members while also helping innovative businesses to scale and commercialise new technologies.

Among the pension providers are Railpen, Nest, LPPI, LGPS Central and Border to Coast.

The British Business Bank is working alongside them to support the launch of the UK Scale-up Fund and with the intention of investing in partnership with the group. The Office for Investment is also supporting the consortium.

Prime Minister Andy Burnham said: “Today sends a clear message: this is a vote of confidence in British business, British talent and British ambition.

“This new fund would help unlock good growth in every postcode, connecting pension investment with the entrepreneurs and technologies that will reindustrialise Britain and create the jobs of the future.

“That means more opportunities for working people, stronger returns for savers, and more businesses choosing to start, grow and stay in Britain.”