UK Treasury building.
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UK Finance Minister Jeremy Hunt will detail on Monday a long-awaited plan to encourage pension funds and other asset managers to invest in high-growth sectors, the Treasury said on Sunday.
The Treasury said Mr Hunt will give a speech on Monday at the City of London’s Mansion House to explain how the reforms will increase profits for pensioners and free up capital for businesses.
The government wants to boost Britain’s slow economic growth without adding to its huge public debt and wants to persuade the pension system to invest some of its money in infrastructure, start-ups and green technology. thinking.
But the pension industry says it opposes mandatory quotas.
“We will do everything in our power to ensure the best possible outcome for pension savers, and any changes to our investment structure will put the needs of pension savers first and foremost,” the Treasury Department said. It is planned.
Industry executives told Reuters that he will release a list of insurers and asset managers that have, in principle, signed a deal to expand investment in alternative assets.
Hunt also plans to try to dispel concerns that raising funds from long-term investors such as pension funds could have a negative impact on the government bond market. “The government bond market will be our priority,” he said.
Mr Hunt would affirm that any changes to the pensions industry would be “evolutionary rather than revolutionary” and that the reforms would in no way undermine the UK’s competitive position as a major financial centre.
Financial services lobby group TheCityUK said government policy should aim to encourage pension funds to invest in growth and thus generate higher returns.
“Pension funds in Australia and Canada are currently performing well on average,” the group said in a statement. It will also support growth.”
Hunt also reiterated that curbing high inflation remains his priority, saying: “There can be no sustainable growth without first resolving inflation, which hampers investment and undermines consumer confidence. ‘ said.
In an interview with the Financial Times ahead of the expected national elections in 2024, Hunt said he would not agree to big tax cuts later this year if it would make inflation worse, adding that “it will lead to inflation.” He also denied public sector salaries.