DEFICITS FALL BY £8bn

THE pensions black hole at Britain’s biggest businesses shrank by £8bn last year thanks to buoyant markets and a concerted effort to plug gaps.

Companies in the FTSE 350 index have a combined shortfall of £76bn in their defined benefit pension schemes, which guarantee workers a set proportion of their income in retirement.

The cut is likely to leave more cash for investment or dividends.

But consultant Mercer, which calculated the figures, said the total amount the firms will eventually have to pay to retired staff has risen by 4pc to £857bn.