Leaders in the financial services sector are represented by the Capital Markets Industry Taskforce (CMIT), which stated that the nation has to find £100 billion annually to catch up after falling behind its rivals for a long time.
It advocated concentrating on energy, real estate, and venture capital, claiming the funds could be freed from the £6 trillion in long-term capital held by the insurance and pension industries.
The expansion of the economy is now the government’s major objective.
During the election campaign, Prime Minister Sir Keir Starmer stated that he aimed to reach a growth rate of 2.5%.
Since then, Labour has maintained that the £22 billion “black hole” in the public finances that the Conservatives left behind has made its job more difficult. As a result, it will have to make “tough choices” in the upcoming budget, which is expected to target wealth creators and others with the broadest shoulders.
According to the analysis, pensions in the UK could maintain parity with the pension industry in other mature markets even if they increased their allocations to domestic and unlisted shares by double.
It went on to say that the government ought to consider investment incentives, including lower share taxes for individual investors, while it is examining the pension system’s capacity to support new businesses.
