economy
Make pension tax relief only available to savers prepared to invest in UK, Andy Haldane says
British Chambers of Commerce chief calls for ‘home bias’ on retirement savings to close funding gap for SMEs
TL;DR
- Andy Haldane suggests linking UK pension tax relief to investments in British businesses.
- The proposal aims to close the funding gap for small and medium-sized enterprises.
- Haldane argues that unfettered free markets have not worked and radical reforms are needed.
- The British pension system is unique globally for not having a "home bias".
- The plan would make channeling funds into UK companies a condition for receiving pension tax relief.
- Surveys indicate 70% of households want their savings invested in UK firms.
- Previous proposals for mandating UK investments by pension schemes faced opposition from City firms.