Patriotism and what it means to be “patriotic” has been at the forefront of news over recent months, but it could be defined as a love for one’s country and a commitment to its prosperity. Therefore, in the context of financial advice and investment, patriotism can mean choosing to support domestic businesses, innovation, and economic resilience. For UK investors and financial advisers, this is not just a sentimental notion; it could be a strategic imperative.

The UK is home to some of the world’s most exciting high-growth sectors, from artificial intelligence and advanced manufacturing to climate tech, marine innovation, and life sciences. These industries are not only shaping the future but are also ripe with opportunity for investors seeking growth, diversification, and impact.

Yet despite this, UK pension funds have historically underinvested in domestic equities. According to OMB’s 2024 research for the Pensions Regulator, less than 5% of UK pension scheme assets are allocated to UK-listed shares. This represents a stark contrast to countries like Australia (40%), Japan (50%), and the US (60%), according to the Thinking Ahead Institute’s 2024 Global Pension Assets Study.

Similarly, OMB’s research identified that UK Defined Benefit schemes, which once held as much as 32% in UK equities, now allocate under 2%, plus Defined Contribution pensions have dropped from 40% to just 6% over the past decade. 

This underinvestment has undermined the UK’s financial ecosystem, stifled innovation, and left high-potential UK companies undervalued compared to their global peers. Worse than this, it has led to many UK innovators moving overseas to raise capital and taking their jobs and growth with them. This represents a structural failure driven by regulatory shifts, risk aversion, and a preference for overseas assets.

The 2025 Mansion House Accord marks a turning point. Seventeen major pension providers, representing 90% of active DC savers, have pledged to allocate 10% of workplace portfolios to UK growth assets by 2030, with 5% ringfenced for domestic investments. This is a welcome move, but it’s only part of the solution.

For advisers looking to help clients back Britain today, the Enterprise Investment Scheme (EIS) offers a powerful tool. EIS is designed specifically to support UK founders, stimulate innovation, and drive economic growth. It provides investors with access to early-stage companies in high-growth sectors, alongside significant tax reliefs, such as 30% income tax relief, capital gains tax deferral, loss relief, and potential inheritance tax exemption - each designed to improve the tax efficiency of investing in early-stage companies, depending on individual circumstances.

The innovative early-stage ecosystem in the UK deserves investor attention. UK tech firms are pioneering breakthroughs in AI, robotics, and quantum computing. Climate technology startups are developing solutions for decarbonisation, energy storage, and infrastructure challenges. Marine technology companies are advancing offshore energy and improving ocean data collection and analysis. In life sciences, British companies are leading in medtech, biotech, drug discovery, and vaccine development.

These are not fringe sectors. These sectors are the engines of future UK prosperity and they are overwhelmingly populated by UK-based founders who need capital to scale. EIS investing channels funds directly into these ventures, offering investors the chance to participate in transformative growth while supporting the national interest.

Moreover, EIS is uniquely aligned with the goals of the Mansion House reforms. While pension funds move slowly, EIS investors can act now. Advisers have a critical role to play in educating clients about the benefits of EIS, not just as a tax-efficient wrapper, but as a patriotic investment strategy. To misappropriate John F Kennedy’s quote, “Ask not what your country can do for you; ask what you can do for your country.”

Backing Britain through EIS is not about waving flags, it’s about recognising the value of UK innovation, supporting domestic job creation, and helping build a resilient economy. It’s about ensuring that the next generation of global leaders in tech and science are headquartered in the UK, not elsewhere.

Of course, EIS investing carries risk. These are early-stage companies, and not all will succeed. But with careful due diligence, portfolio diversification, and the support of experienced fund managers, advisers can help clients navigate these risks while accessing outsized growth potential.

In doing so, they also help address the systemic challenge of the UK’s capital markets having become disconnected from its entrepreneurial ecosystem. By redirecting capital into UK startups, EIS bridges that gap, revitalising domestic investment and reinforcing the UK’s position as a global innovation hub.

In conclusion, patriotism in investment is a strategic stance. UK financial advisers have a unique opportunity to guide clients toward investments that support national growth, deliver job creation, and align with the values of resilience and innovation, whilst also aiming to manage their tax exposure and seek long term growth. The EIS is a cornerstone of that strategy.