TLDR:
- The UK needs £1tn of fresh investment over the next decade to hit economic growth targets, according to a City taskforce.
- Key sectors requiring investment include housing stock, energy, water projects, and venture capital for growing companies.
The Capital Markets of Tomorrow report led by Sir Nigel Wilson outlines the need for £100bn of investment per year for the next decade to achieve at least 3% annual growth in the UK. Specifically, sectors like housing, energy, and water projects require significant investment. The report emphasizes the importance of making the UK a competitive market for investment and providing incentives for investors. Key recommendations include creating new investment funds through existing initiatives and ensuring tax breaks for pension funds encourage investment in UK companies. Additionally, the report calls for the reintroduction of tax credits on dividends from UK companies and the streamlining of UK ISAs to encourage more investing in British stocks.
The UK Capital Markets Industry Taskforce (CMIT) is behind the report, pushing for regulatory changes to stimulate investment and economic growth. The group has highlighted the need for the UK to catch up with the US in capital markets development. The Treasury has acknowledged the challenges ahead in fixing the economy but has taken steps to boost growth through initiatives like a pensions investment review. Overall, the report underscores the importance of attracting substantial investment to drive economic growth and ensure the UK remains competitive on the global stage.
