The new government’s desire to place UK sustainable economic growth at the top of its agenda, and to view the stock of UK savings and investment as a key driver of this growth, is a welcome recognition of the investment system’s central role in driving sustainable growth and better working-lives, and in improving intergenerational fairness within a more resilient domestic framework.
Where previous governments have tended to view the investment system either as a source of taxation or systemic risk, the new government has the opportunity to recognise its more fundamental function as a critical financial intermediator, channelling money from the UK savings and investment stock to UK firms in need of growth capital. Such a view correctly locates the investment system at the centre of a what could be a virtuous spiral for the UK economy – with higher rates of investment driving a more productive economy in turn driving higher rates of investment.
However, in order for the investment system to fulfil this potential it is itself in need of reform.
New Capital Consensus (NCC) comprises a coalition of organisations brought together to create a neutral, apolitical research project and a policy discussion forum for commercial entities, think-tanks, policymakers and regulators. Our shared purpose is to identify the reform needed to enable the investment system to best intermediate between UK savers and the UK economy – or, to put it in social policy terms, to find and foster the strongest links between the UK’s savings and retirement aspirations and its economic growth aspirations that drive prosperity.
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