Investors call for a Budget for savers

Investors are urging the Chancellor to use his upcoming Budget to boost the competitiveness of the UK economy and global standing of the UK investment management industry.

In its Budget submission to the Treasury, the Investment Association (IA) is calling on the government to capitalise on the UK’s world leading financial services industry, and remove the barriers that make the country less attractive for business. The trade body is also recommending a series of measures that will ensure pension savings can be used to level up investment in infrastructure across the UK, including:

  • Empowering investment managers to take investment decisions that are geared towards sustainability by giving clarity on the timing and nature of regulatory measures that need to be introduced to facilitate the transition to net zero by 2050.
  • Introducing the Long-term Asset Fund for investing in long-term illiquid assets, opening up investment opportunities to more pensioners, and a new source of long-term funding for infrastructure projects, such as hospitals, roads and new homes.
  • Consulting with stakeholders on the merits and potential impacts of a switch from the Retail Prices Index to Consumer Prices Index including housing costs, before proceeding with the change which could impact defined benefit pensions.
  • Reviewing the funding basis of the Financial Services Compensation Scheme to ensure the levy doesn’t impact on the attractiveness of the UK as a place to do business.
  • Implementing the recommendations of the Asset Management Taskforce’s UK Funds Regime Working Group to make the UK a more attractive fund domicile, including through measures to ensure investment funds can be used more effectively in the retirement income market.
  • Creating a Professional Investor Fund, proposed jointly with the Association for Real Estate Funds, which would allow pension funds and professional investors to invest in real estate and infrastructure through an unlisted, tax transparent fund structure. No current such fund structure currently exists in the UK, meaning UK investors are currently having to use overseas funds.
  • Reviewing the Apprenticeship Levy as the current framework is not well suited to the recruitment and training practices for the investment management industry.

The Chief Executive of the Investment Association Chris Cummings said:

“This is a pivotal moment for our country, the companies that do business here, and the people that live here. Our proposals will help boost savings for people across the UK, support their financial well-being, and ensure the continued competitiveness of the UK economy now that we’ve left the EU.

“With three-quarters of all households using the services of an investment manager, supporting the industry to thrive helps our millions of customers, which in turn drives UK prosperity.”

Now that the UK has left the EU, the IA is also urging the government to secure a future relationship that maintains the close economic relationship with the EU and protect the UK’s position as the leading international financial services hub.

The Investment Association’s Spring Budget 2020 representation can be found here 

For further information, please contact:

Katie Martin, Head of Communications: [email protected]

T: +44 (0)20 7269 4655

Helen Ayres, Communications Manager: [email protected] 

T: +44 (0)20 7269 4620

David Parton, Communications Executive: [email protected]

T: +44 (0)20 7269 4625

IA press office: [email protected]

T: 020 7269 4696

About the Investment Association (IA):

  • The IA champions UK asset management, supporting British savers, investors and businesses. Our 250 members manage £7.7 trillion of assets and the asset management industry supports 115,000 jobs across the UK.
  • Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
  • Our purpose is to ensure investment managers are in the best possible position to:
    • Build people’s resilience to financial adversity
    • Help people achieve their financial aspirations
    • Enable people to maintain a decent standard of living as they grow older
    • Contribute to economic growth through the efficient allocation of capital.
  • The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
  • The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.