The signatories, such as HSBC’s Noel Quinn and LSE’s Julia Hoggett, stressed that the UK is at a pivotal moment where it could significantly enhance its economic landscape
A consortium of high-ranking executives from leading British companies, including HSBC Holdings Plc and the LSE, have urged UK Chancellor Jeremy Hunt to implement prompt pension reforms. The group, which also includes representatives from Abrdn Plc, M&G Plc, GSK Plc, Schroders Plc, BP Plc, and J Sainsbury Plc, addressed their concerns through a letter outlining the requirement for changes that could help enhance economic growth and returns within the UK.
The signatories, such as HSBC’s Noel Quinn and LSE’s Julia Hoggett, stressed that the UK is at a pivotal moment where it could significantly enhance its economic landscape. They pointed out a persistent underinvestment in domestic businesses despite the presence of strong firms and considerable potential within the country. Over the past 25 years, pension investment in UK equity markets has dramatically dropped from 53 per cent to just 6 per cent of total assets. This shift represents a withdrawal of nearly £1.9 trillion, with a significant portion of these funds now being invested globally.
In their proposal, the executives proposed setting a competitiveness goal for the Financial Reporting Council (FRC). This would require governance regimes to consider how attractive the UK’s equity markets are to investors. This move would align with similar changes made to the FCA and Prudential Regulation Authority. The business leaders are hopeful that these reforms will be included in Chancellor Hunt’s autumn statement set for November 22.
Moreover, they advocated for further consolidation in DC pension plans. The aim is to make sure that all plan members benefit from diverse investment portfolios that include UK equities. Till now, the Treasury has not publicly responded to these proposals.
The executives’ call to action underlines a crucial issue facing the UK economy: the need to redirect substantial investments back into domestic businesses to support growth and prosperity. With the chancellor’s statement on the horizon, there is expectation in the business community about potential shifts in policy that could shape the future of UK investments.