The political winds may be shifting toward a more interventionist “Manchesterism” style of economics under Prime Minister Andy Burnham, with potential tax rises on the horizon, but investors must resist the urge to hit the panic button. History shows us that rashly switching and ditching assets based on speculation is a sure fire way to lock in unnecessary transaction costs, trigger premature tax liabilities, and crucially miss out on the power of long-term compounding.

Market timing is a notoriously difficult game and time in the market is what counts the most. It is also important to remember that a domestic regime change won’t cause global corporate earnings, which power the FTSE 100, to grind to a halt, nor is it likely to stop overseas suitors from circling attractive UK targets.

However, keeping a steady hand on the tiller doesn’t mean cutting yourself adrift from changing realities. It is vital to remain nimble and ready to adjust your course as the political winds begin to blow in a new direction. With the spotlight firmly on wealth and property under a Burnham administration, the radar is flashing red for potential changes to Capital Gains Tax (CGT) and the top-rate of income tax. For those looking to shelter their portfolios, it is well worth exploring government-backed, tax-efficient life rafts like Venture Capital Trusts (VCTs), the Enterprise Investment Scheme (EIS), and the Seed Enterprise Investment Scheme (SEIS).

These vehicles offer a highly attractive double-whammy of upfront income tax rebates, scaling up to 50% under SEIS, alongside completely tax-free capital gains growth. While EIS allows you to defer existing capital gains, SEIS provides 50% relief, when directly investing into early-stage businesses. VCTs offer a different ride via a diversified, listed fund structure that pays tax-free dividends and 20% initial tax relief. Each is undeniably higher risk and requires holding your nerve, but as a strategic shield against a shifting fiscal landscape, they deserve a closer look.

With public markets feeling like a bit like of a see-saw, caught between geopolitical fractures and stretched tech valuations, investors are naturally looking elsewhere to find some shelter and stability. Private markets offer an excellent alternative, especially with the growing ability to move slices of SIPP investments into some of the world’s biggest private equity and real asset firms. It is super important to ensure you are making the most of all tax-wrappers, and SIPPs are central to this strategy.

Andy Burnham in Downing Street has the potential to act as a significant accelerator here. He has long championed a blueprint of unlocking huge tranches of private capital to power regional growth. Of course, private markets aren’t a smooth ride for everyone, given that your money is less liquid and locked up for longer. But as the government seeks a recipe for long-term economic growth, firms with deep pockets and a track record of funding multi-year projects are the ones likely to get the biggest bite of the cake.

Two Infrastructure Funds to Watch for Your SIPP

For investors looking to align their pension savings with long-term macro trends, these three institutional-grade, semi-liquid infrastructure funds offer accessible entry points into the private markets via the Wealth Club SIPP.

• EQT Nexus Infrastructure Fund: Managed by European private equity giant EQT, this semi-liquid fund invests in high-quality infrastructure companies across four key sectors: digital, energy and environment, transport and logistics, and social infrastructure. By backing businesses that provide critical services and networks, the fund aims to address some of society’s most fundamental needs while generating attractive long-term returns.

 

• Stonepeak+ Infrastructure Fund: Stonepeak is the world’s largest independent infrastructure specialist. The Stonepeak+ Infrastructure Fund aims to invest in infrastructure businesses that benefit from long term structural megatrends: the energy transition, the growth of digitalisation and data usage, and the increasing need to modernise and expand essential infrastructure systems. These dynamics are driving demand for infrastructure assets – a global opportunity Stonepeak estimates to be worth nearly $100 trillion.

Three funds to watch for tax efficiency and scale up support

If you are looking to actively shelter your wealth from potential incoming CGT and top-rate changes via earlier-stage venture capital, and supporting promising UK scale ups and start ups – these funds on the Wealth Club platform can offer some of the strongest long-term track records in the industry:

• SFC Angel Fund SEIS. The SFC Angel Fund SEIS aims to invest in a portfolio of very early-stage companies with innovative products and disruptive technologies which have the potential to generate successful exits. The team targets a return of 3x, not guaranteed. Originally set up as an angel syndicate in 2012, SFC Capital (previously Startup Funding Club) is now Europe’s third most active VC, with 105 deals closed in 2025. It backs companies like payments operator Ryft, 3D printing university spin out Hydra Manufacturing and Cognism, a machine-learning driven marketing platform, which has been a particularly notable success.

 

• The Haatch EIS Fund is managed by entrepreneurs with first-hand experience of successfully founding, growing and selling businesses. The fund aims to back four to seven early-stage digital transformation businesses in sectors the team knows well, such as software-as-a-service and digital consumer. The team will invest where it believes it can use its considerable experience to add value. Recent investments include Audiences which helps enterprises activate and analyse their own first-party data and a successful exit includes Re-flow, the workflow management.

 

• The ProVen VCTs are among the UK’s longest-established VCTs focused on growth investing. Managed by Beringea since 2000, they invest in entrepreneurial businesses with a particular emphasis on consumer, e-commerce and software companies. The portfolio currently holds around 50 businesses and has backed a number of successful companies, including jewellery brand Monica Vinader and advertising technology platform Blis, both of which have been realised through profitable exits. Beringea’s transatlantic presence provides portfolio companies with support as they scale internationally, while investors gain access to a diversified portfolio of established growth businesses.