Britain’s new government needs a significant investment of one trillion pounds ($1.3 trillion) over the next decade to enhance its economy, according to recent reports.
New British Prime Minister Keir Starmer had pledged a 2.5% annual growth rate during his election campaign.
As per multiple outlets, to achieve the desired growth rate, the government would need an additional 100 billion pounds annually, with a focus on energy, housing, and venture capital, according to the Capital Markets Industry Taskforce.
Nigel Wilson, the report’s lead author and former head of Legal & General, suggested that this investment could come from the six trillion pounds of long-term capital in Britain’s pensions and insurance sector.
To spur investment, the report recommended government incentives such as tax reductions on shares for retail investors.
Additionally, a report from the think tank New Financial revealed that UK pensions have much lower allocations to domestic and unlisted equities than other developed markets.
UK pensions could potentially double their allocations while still meeting global standards.
Additionally, the UK government is reviewing the pension system to boost investments in domestic startups.
