Labour has been warned towards forcing pension funds to put money into a progress pot.

Shadow Chancellor Rachel Reeves has backed proposals to create a £50billion "future growth fund".

It might see 5 p.c of each outlined contribution pension scheme’s belongings invested in it.

The Labour politician mentioned she believes schemes would make investments voluntarily, however didn't rule out forcing them.

However former pensions minister Sir Steve Webb warned towards telling schemes the place to place cash.

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The accomplice at pension consultants LCP instructed the Express: “Any government should think carefully before forcing pension schemes to invest member money in a particular favoured project.

"If the 'future growth fund' offers good long-term returns on investment then pension schemes will be queuing up to invest, and there will be no need to force them.

"But if it is a poor investment, then forcing schemes to invest will damage the pension savings of millions of people.

"Given that we have too little money going in to pension saving as it is, forcing schemes to invest in ways they do not think will be in their members’ interests will only make matters worse."

The boss of investment giant Schroders has also warned against meddling.

Chief executive Peter Harrison said retirement scheme managers must not be "inhibited" in how they pick investments for savers.

Writing in The Telegraph, Mr Harrison said: “We need to ensure their pension managers are not inhibited in selecting these investments on their behalf.”

The "future growth fund" plan to again UK start-ups comes from Nicholas Lyons, lord mayor of the City of London.