Is the Chancellor planning to use your pension to grow the economy?
Jeremy Hunt will set out a series of ‘Mansion House reforms’ today, with the plans intended to channel tens of billions of pounds of Britain’s pensions savings into high-growth companies.
Hunt will use his first Mansion House speech to set out how Britain’s financial services sector will support the Government’s plan to grow the economy.
The speech will outline “three golden rules that will release capital for high-growth businesses and boost outcomes for pension savers. Hunt will say that the investment in businesses will create good jobs, open up opportunity and contribute millions in tax receipts.
In front of an audience of CEOs and leaders from the financial services sector in the City of London, the Chancellor will set out his “Mansion House Reforms” to drive the Prime Minister’s priority to grow the economy “by making the UK the most innovative and competitive financial centre in the world”.
A statement from HM Treasury has set out what Hunt will say in his speech including that the financial and related professional services is starting from “position of strength”, employing more than 2.5 million people and generating more than £100bn in tax revenue.
He will also hail the importance of the traditionally “nimble” and “agile” sector for Government’s vision of Britain as a “science superpower and the world’s next Silicon Valley”.
The Chancellor is expected to say: “I want to lay out plans to enable our financial services sector to increase returns for pensioners, improve outcomes for investors and unlock capital for our growth businesses.
“Firstly, everything we do we will seek to secure the best possible outcomes for pension savers, with any changes to investment structures putting their needs first and foremost.
“Secondly, we will always prioritise a strong and diversified gilt market. It will be an evolutionary not revolutionary change to our pensions market. Those who invest in our gilts are helping to fund vital public services and any changes must recognise the vital role they play.
“The third golden rule is that the decisions we take must always strengthen and never compromise the UK’s competitive position as a leading financial centre able to fund, through the wealth it creates, our precious public services.”
Hunt is expected to announce a wide-ranging package of measures that build upon the Edinburgh Reforms announced in December last year and deliver upon the vision that the Prime Minister himself set out at Mansion House in 2021 – with a smarter rulebook tailored for Britain’s needs.
On the economic headwinds facing the UK economy, the Chancellor will say that there can be “no sustainable growth without first eliminating the inflation that deters investment and erodes consumer confidence” and promise that the Government will continue to honour its “responsibilities to those struggling the most” in the face of inflation.