Chancellor George Osborne's plan to convince pension funds to invest £20bn into a government-backed infrastructure fund has serious "issues", Labour has said.
Osborne has been meeting with the National Association of Pension Funds to discuss an arrangement where at least 2.5% of funds are invested in UK infrastructure projects via the Pension Infrastructure Platform (PIP).
Other UK pension funds will be able to invest in the fund, which will levy no more than 0.5% of assets under management in management charges.
However, Gregg McClymont, shadow pensions minister, said there are "big issues with the detail" of the plan.
He said it will be difficult to persuade pension funds to move away from low-risk, long-term investments and into much more changeable territory.
"There is a reason why this [fund] does not already exist. There are big obstacles to this," McClymont said.
"Pension funds need stability, and when governments change it can impact on infrastructure spending agreements immediately.
"Equities within pension funds are far lower that you might think; they are very much into bonds now."
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