Tag: growth

Industrial Strategy launch to ‘hardwire stability for investors’

  • The Business Secretary and Chancellor announce steps to deliver long-term growth through a modern Industrial Strategy, including appointing a Chair of the new Industrial Strategy Advisory Council 
  • The Industrial Strategy will create a pro-business environment and play to the UK’s strengths, focusing on eight growth driving sectors including creative industries and financial services  
  • Business Secretary Jonathan Reynolds pledges an end to instability “our modern Industrial Strategy will hardwire stability for investors and give industry the confidence to plan for the next 10 years and beyond” 
  • Clare Barclay, CEO of Microsoft UK, will chair government’s new Industrial Strategy Advisory Council, which will provide expert advice developed in partnership with business, unions, and stakeholders from across the UK 
  • Announcements come ahead of International Investment Summit which will bring together business leaders from around the globe to boost investment and growth 
  • Government is also asking for business to help shape the industrial strategy with a green paper to develop the plans in partnership 

The next generation of British industry has been fired-up and readied to reignite our industrial heartlands and kickstart economic growth, as the Government launches the first Industrial Strategy in seven years. 

Business and Trade Secretary Jonathan Reynolds and the Chancellor of the Exchequer Rachel Reeves have published a green paper to kickstart delivery of the Government’s modern Industrial Strategy. The strategy will drive long-term growth in key sectors that is sustainable, resilient and distributed across the country.   

Announcing the eight growth sectors will be the focus of the Strategy, alongside naming the new Industrial Strategy Advisory Council’s chair, the Business Secretary has promised to ‘give investors a ten year plan to choose Britain’.  

The key sectors the government will focus its modern Industrial Strategy are on advanced manufacturing; clean energy industries, creative industries; defence; digital and technologies; financial services; life sciences; and professional and business services. 

The green paper, which will be published tomorrow on the day of the International Investment Summit, will bring together UK leaders, high-profile investors and businesses from across the world. There, Reynolds is expected to tell delegates the Industrial Strategy will put Britain back on the global stage and help attract investment into the most productive parts of the UK economy.  

Business and Trade Secretary Jonathan Reynolds MP said: “Our modern Industrial Strategy will hardwire stability for investors and give them the confidence to plan not just for the next year, but for the next 10 years and beyond.  

“This is the next step in our pro worker, pro business plan which will see investors and workers alike get the security and stability they need to succeed. 

“Clare’s wealth of talent and experience will help ensure the Industrial Strategy delivers its mission of unleashing the potential of high productivity sectors to spur growth, spread wealth, and drive-up employment across the UK.”

Chancellor of the Exchequer Rachel Reeves MP said: “I have never been more optimistic about our country’s potential. We have some of the brightest minds and greatest businesses in the world. From the creative industries and life sciences to advanced manufacturing and financial services. 

“This Government is determined to deliver on Britain’s potential so we can rebuild Britain and make every part of the country better off.”

Clare Barclay, CEO of Microsoft UK, will chair the Industrial Strategy Advisory Council. The Council will inform the development of the Industrial Strategy through its expertise and latest evidence, working with business, trade unions, devolved governments, local leaders, academia and stakeholders.  

In the King’s speech the Government committed to putting the Council on a statutory footing – giving it powers and responsibilities and ensuring it will be permanent and independent.  

Ahead of establishing a statutory body, we are introducing an interim advisory Council. The first Council meeting and announcement of full membership is expected in the coming weeks.   

Microsoft UK CEO Clare Barclay said: “As Chair of the Industrial Strategy Advisory Council, I will ensure the Council provides a clear and strong voice on behalf of business, nations, regions, and trade unions, as we invest for the future to ensure that our prosperity is underpinned by robust growth in key sectors right across the country. 

“Whilst we fully embrace the industries of today, we must also have a clear plan for future growth, and the Advisory Council will play a central role in shaping and delivering this plan.”

The government has also identified eight growth-driving sectors for the Industrial Strategy, focusing on sectors the UK excels in today and will excel tomorrow.  

Over the last 25 years, the top 30% of sectors ranked by productivity in 1997 were responsible for generating roughly 60% of the economy’s entire productivity growth. That’s why our Industrial Strategy will channel support to sectors and geographical clusters that have the highest growth potential for the next decade. 

Our strategy will create a pro-business environment to capture a greater share of internationally mobile investment in strategic sectors and motivate domestic business to boost their investment and scale up their growth. 

Businesses up and down the country will also be invited to respond to the Industrial Strategy Green Paper, which will be published tomorrow.  

The consultation will provide stakeholders with the opportunity to inform the Strategy’s continued development and ensure it delivers tangible impact to people and communities right across the UK.  

Views are sought from business, international investors, unions and any other interested parties, on the overall vision, approach to growth sectors and the policy levers needed to drive investment.   

Make UK CEO Stephen Phipson said: “We live in a world which is massively different to a decade ago and simply leaving the economy and, industrial strategy, to the free market is an ideology which is long past its sell by date.

“This is a welcome first step in addressing the achilles heel of the economy which has left the UK an outlier among advanced countries. It sets out a clarity of vision for how the resources of Government and, in particular, each department can be convened towards a single objective of long term growth across all regions.  

“With the welcome announcement of the Industrial Strategy Advisory Council Chair and, the Council being put on a statutory footing, industry will no longer fear the constant chop and change in policy we have seen over the last decade or so and can focus on the long term – it is important that the Government is delivering on its promises.”

WPP CEO Mark Read said: “WPP supports the Government’s objective to create and foster an investment environment that drives long-term growth.

“As a global marketing services company, we believe that the UK’s world-leading creative industries, powered by new technologies like AI and exceptional talent, can continue to play a key role in further advancing the UK’s investment case on the global stage.”

Airbus UK Chairman John Harrison said: “Airbus welcomes the inclusion of advanced manufacturing in the Government’s Industrial Strategy as a vital opportunity to build on the successful partnership between government and the aerospace sector.  

“As one of the most technologically advanced businesses in the UK, we also welcome the strong focus on innovation, which is crucial to driving future growth and maintaining the UK’s global competitiveness in aerospace and defence.”

For businesses to invest and thrive they need confidence in their supply chains. So, we are also establishing a new supply chains taskforce in government that will work to assess where supply chains critical to the UK’s economic security and resilience – including those in the growth driving sectors outlined in the industrial strategy – could be vulnerable to disruption.

The taskforce will ensure that government works with business to address these risks, building the conditions required to deliver secure growth. 

The UK Government wants the UK to be a prime investment opportunity for business. The Industrial Strategy, and the Industrial Strategy Advisory Council, will be key to giving investors the solid foundation on which to build. 

Prime Minister puts investment at the heart of first Council of the Nations and Regions

Leaders from across the UK will come together in Scotland next Friday (11 October) as the Prime Minister convenes the first Council of Nations and Regions.

  • Prime Minister convenes leaders from across the UK for Council of the Nations and Regions in Scotland on Friday 11 October.
  • Council to focus on maximising opportunities to deliver investment and growth across the UK.
  • Comes as speakers are confirmed for the UK Government’s inaugural International Investment Summit.

Leaders from across the UK will come together in Scotland next Friday as the Prime Minister convenes the first Council of Nations and Regions. 

Three days ahead of the International Investment Summit, the first Council will focus on investment and growth and is a key moment to ensure everyone is collectively playing their part to maximise the opportunity the Summit presents for the whole of the UK.  

The Council brings together First Ministers, Northern Ireland’s First Minister and Deputy First Minister and regional Mayors from across England, as the UK Government forges new partnerships, resets relationships and seizes the opportunity to secure long term investment with the aim of boosting growth and living standards in every part of the UK. 

Prime Minister Keir Starmer said:  I’m determined to bring forward a new era of stability, trust, and partnership with businesses, investors, Devolved Governments, and local leaders to boost the economy and restore the UK’s reputation one of the best places in the world to do business.

“I’ve set out that we will be doing things differently, and that’s exactly why we are delivering our promise to convene the first Council of the Nations and Regions as we work as one team to maximise opportunities ahead of the Investment Summit.

“No more talking shops of the past. Genuine, meaningful, and focused partnership to change the way we do business, redefine our position on the world’s stage, and unlock the whole of the UK’s untapped potential to make everyone, everywhere better off.”

Tracy Brabin, Mayor of West Yorkshire, said: “This new era of genuine partnership working between the Government and Mayors will help us to unleash the potential of our great regions and boost growth. 

“Mayors are champions of their regions at home and abroad, attracting investment, creating good jobs, and putting more money in people’s pockets. Our investments in transport, skills and homes, create the right environment for growth by connecting businesses to the talent and finance they need to succeed.

“Through partnership working and by listening to business, we’ll deliver the long-term investment our country needs to shake off stagnation and face the future with confidence.”

Local leaders as well as Heads of the Devolved Governments have also been invited and are expected to attend the International Investment Summit to forge new partnerships with businesses to unlock growth in every corner and every community across the UK.

The UK Government led inaugural International Investment Summit is expected to be opened by the Prime Minister where he will take part in an in conversation event with Eric Schmidt – the pioneer behind Google’s transformation from start up to one of the world’s most powerful companies. 

 Eric Schmidt, Former CEO & Chairman of Google KBE said: “Artificial intelligence represents one of the most transformative technologies of our time. It will change how economies everywhere function, and it will determine which countries stay competitive in the decades to come.

“Last year, when the UK hosted the first global summit on AI safety, the country displayed its commitment to being a leader in responsible innovation. Now, it has the opportunity to go even further and articulate a vision for the future where the UK is a hub for world-class talent.

“I’m looking forward to discussing with the Prime Minister how we can drive even greater investment in research and education to ensure the UK stays at the forefront of these technological breakthroughs.”

The Summit will gather UK leaders, high-profile investors and businesses from across the world at a historic venue in central London – with confirmed speakers including Ruth Porat President & Chief Investment Officer, Alphabet and Google, Alex Kendall, CEO of Wayve and Bruce Flatt, CEO of Brookfield Asset Management. 

The event will provide an opportunity for the Government to establish enduring partnerships with businesses to boost investment in the UK and to give investors the certainty and confidence they need to drive growth.  

It will be sponsored by Barclays, HSBC, Lloyds, M&G plc, Octopus Energy, and TSL.   

Today’s announcement follows the Government confirming funding this week to launch the UK’s first carbon capture sites in Teesside and Merseyside.

In a boost for economic growth and protecting the environment, the new carbon capture and CCUS enabled hydrogen projects will create 4,000 new jobs, sustain important British industry, and help remove over 8.5 million tonnes of carbon emissions each year – the equivalent of taking around 4 million cars off the road.

C.S. Venkatakrishnan, Group Chief Executive, Barclays said: The International Investment Summit is an important opportunity for the Government to build further investor confidence based on its priorities for driving UK economic growth.   

“The UK’s stability, skills and history of innovation make it an attractive investment destination. The private sector has an important supporting role in helping the economy.  Barclays has made its largest ever capital investment in the UK to drive economic growth and we continue to connect both domestic and international investors with opportunities across the country.”

Georges Elhedery, Group CEO, HSBC said: “From SMEs to multinational corporates, UK companies’ enterprise, expertise and innovation present huge opportunities for partnership and economic growth.

“With our long history of helping UK customers trade with the world and international customers to invest in the UK, HSBC is pleased to support the International Investment Summit.”

Charlie Nunn, Group Chief Executive, Lloyds Banking Group said: “The UK business environment remains an innovative and dynamic destination for investors and global talent, and we are proud to support the International Investment Summit.

“Lloyds works with corporate and institutional clients from the UK and across the world – generating jobs and growth, attracting inward investment, and increasing exports.  These are essential ways we are helping Britain prosper.”

Andrea Rossi, CEO, M&G plc said: “The UK has a clear national mission to drive economic growth and back wealth creation across every region of the country.

“At M&G, we have actively invested in the UK for 175 years, driving progress and helping people, businesses and communities thrive. We continue to support a range of companies, invest in critical infrastructure and play our part in boosting regional economies.

“The International Investment Summit is a crucial moment to put the UK back on the investor map, showcase market opportunities and reinforce how business and government can work in partnership.”

Greg Jackson, CEO of Octopus Energy said: “The UK is the vanguard of green innovation, brimming with the talent and technology needed to accelerate the global energy revolution.

“By investing in British renewables and clean tech, we’re not just creating greener energy for people but driving the solutions that will power the world. The International Investment Summit is a great opportunity to showcase the UK’s climate leadership and revolutionise the sector.”

Jackie Wild, TSL Group CEO said: “We are delighted to be a partner to the International Investment Summit. We founded TSL more than two decades ago with the vision of creating a British export model of technical engineering and construction excellence.

“We are proud to be delivering projects for international clients across the world to power the fourth industrial revolution. 

“In addition, through the creation of SmartParc, our cutting edge, investable platform for food industry change, we continue to facilitate inward investment into the UK’s food industry to safeguard our national food security.”

Ian Murray comments on Scotland’s latest GDP figures

Scotland’s onshore GDP grew by 0.3% in July 2024 according to statistics announced by the Chief Statistician yesterday. This follows no growth in June 2024 (revised up from -0.3%).

In the three months to July, GDP is estimated to have grown by 0.3% compared to the previous three month period. This indicates a slight decrease in growth relative to the increase of 0.6% in 2024 Quarter 2 (April to June).

The two industries which made the biggest contribution to overall GDP growth in July were Manufacturing and Information and Communications Services, both of which contributed 0.1 percentage points of growth to headline GDP.

The monthly statistical publication and data is available from the Scottish Government’s website.

Ian Murray underlines Westminster government mission for growth

The latest Scottish GDP stats were published yesterday here for the month of June and here for Q2 of 2024.

Responding to the latest figures, Scottish Secretary Ian Murray said: “Scotland is critical in the UK Government’s mission for economic growth, as the Chancellor underlines today in Glasgow where she’ll meet with key members of the business community to turbocharge Scotland’s regeneration.

“Rebuilding is at the root of everything we do but the £22billion black hole in spending left by the previous government – the worst economic inheritance of any incoming government since the Second World War – means that tough decisions are ahead to achieve stability.

“We are making work pay, ensuring the national minimum wage is a true living wage. And with the end of exploitative zero-hours contracts, workers will have increased job security.

“Backed by £8.3bn of UK Government investment, Scottish-based GB Energy will bring jobs and opportunity for all parts of the UK and trade talks have resumed globally to forge stronger links with our international business partners.”

  • Scotland’s onshore GDP is estimated to have fallen by 0.3% in June. This follows growth of 0.2% in May.
  • In the three months to June (Quarter 2), GDP is estimated to have grown by 0.6% compared to the previous three month period (Quarter 1). This is a slight increase on the Quarter 1 growth rate of 0.5%.

‘Two great countries – brought closer together than ever before’

KEIR STARMER’s SPEECH IN BERLIN YESTERDAY

Thank you. And can I first express my sincere condolences for the shocking attack in Solingen last week. Our country knows what it’s like to suffer such senseless and despicable acts and our thoughts are with all the families affected by this terrible event. 

And Olaf – thank you. It’s fantastic to be with you here in Berlin. 

Not, alas, my first visit here as Prime Minister. Football, it turns out… 

Decided to visit it’s second home in Spain, this time. But anyway – it was still an incredible experience… 

And a showcase for the fantastic hospitality of this great nation.  

So thank you for hosting yet another episode in English footballing trauma! I’ve been through a lot.

Anyway – I’m delighted to be back at this moment of opportunity for our two countries. 

Olaf – on every occasion we’ve met, we’ve talked about our ambitions for the future. Our values of security, prosperity, respect and our shared determination to harness the power of government for the service of working people.

That is what we are doing today. 

A new UK-Germany Treaty. A once in a generation chance to deliver for working people in Britain and in Germany. 

A new agreement… A testament to the depth and potential of our relationship. 

With deeper links on science, technology, development, people, businesses, culture. 

A boost to our trading relations.

Germany – of course, already the UK’s second largest trading partner in the world. And through that – a chance to create jobs here and in the UK and deliver that most precious of goods, for both our countries … Economic growth. 

Let me be clear – growth is the number one mission of my Government.  

And what we understand, clearly is that building relationships with our partners – here in Germany and across Europe is vital to achieving it. 

That is what our agreement today represents – the chance that we have. 

We’ll also deepen cooperation on shared social challenges. For example, on illegal migration. Because we cannot smash the smuggling gangs who perpetrate this vile trade without the help of our partners.

And I’m really glad that we had substantive discussions today about how we tackle the smuggling gangs and agreed to develop a joint action plan to tackle illegal migration. 

So we will renew our commitment to the Calais Group – enhance our intelligence sharing on organised immigration crime. but also – increase collaboration on tackling climate change. 

An important goal for the planet, of course for greater energy security, but also – for tackling the drivers of challenges like illegal migration at source.

 And finally – at the heart of this Treaty will be a new Defence Agreement. An agreement that builds upon our already formidable defence co-operation but which expands that relationship to face the threats of a volatile world, together. 

That of course means a shared resolve to stand up for the security of our people and the wider European continent. 

And that begins with our unyielding support for Ukraine – we discussed that in some detail today. 

Because, as Europe’s largest contributors to Ukraine’s war efforts, and as the nations with the highest defence expenditure among European countries in NATO, we know only too well the debt we owe to the Ukrainian people who fight not just to defend themselves, but for all the people of Europe. 

So today – we reaffirmed our commitment to stand with Ukraine for as long as it takes. We also share a common commitment to resolve the crisis in the Middle East, and agree on:

…Israel’s right to self-defence, in compliance with International Humanitarian Law… 

…the need for de-escalation across the region; and for restraint and caution to be exercised…

Unfettered humanitarian access into Gaza…

…agreement to a ceasefire and release of all hostages…

…and the importance of working together towards a political solution based on the creation of a Palestinian State alongside a safe and secure Israel.

The only way to provide long-term peace and security for both Israelis and Palestinians.

That of course – is not an easy goal. But it is one that we are committed to pursuing, together. 

Because – as today shows – Britain can advance its interests much more effectively when we stand with our friends and partners.

This Treaty is part of a wider reset – grounded in a new spirit of co-operation… with our shared understanding that this will be developed at pace and that we hope to have agreed it by the end of the year. 

A Britain reconnected… Resetting our relationships… Rediscovering our common interest…Delivering for working people. 

Britain and Germany already have an incredible relationship. We invest billions in each other’s countries. Thousands and thousands of jobs are supported through trade.

And every year, millions of people travel between our two countries; exchanging ideas, collaborating, creating and connecting.  But today – we build on that … A bright new future for UK-German relations.

Two great countries – brought closer together than ever before. The strongest strategic partners in Europe and on the world stage.

Thank you so much for hosting us here today.

Britain is open for business: Chancellor visits North America in investment drive

  • Rachel Reeves to bang the drum for Britain in visit to New York City and Toronto this week.
  • Chancellor to share her vision for growth and champion UK sectoral strengths across financial services, clean energy and infrastructure to investors and CEOs.
  • Trip to build momentum for the International Investment Summit on 14 October.

Chancellor Rachel Reeves has visited New York and Toronto this week with the message that Britain is open for business.

She met with CEOs and senior representatives from major players across the US and Canada’s foremost industries, highlighting that early steps taken by the government to fix the foundations and restore economic stability makes the UK an attractive destination for investment.

Chancellor of the Exchequer Rachel Reeves: “I’ve wasted no time in my first month in office in taking the difficult decisions necessary to fix the foundations of our economy, so we can rebuild Britain and make every part of the country better off.

“That means restoring economic stability so we can attract the investment needed to create good jobs, boost wages, and improve opportunity across Britain.

“There is no credible plan for growth without private sector investment. That’s why I’m breaking down barriers at home and banging the drum for Britain abroad as we gear up to host the International Investment Summit.”

While in New York, the UK’s first female Chancellor of the Exchequer met with Wall Street leaders and host a reception to celebrate women in finance.

The US is the UK’s biggest financial services trading partner, with UK exports to the US valued at £23.4bn annually. The sector is at the heart of the government’s core mission to deliver sustainable economic growth as a jewel in the crown of the UK economy and one of its success stories, contributing almost 10% of UK GVA and employing 1.2 million people.

In Toronto, the Chancellor met with names in the world of clean energy and infrastructure. The government’s mission to make Britain a Clean Energy Superpower will bring opportunities for economic growth whilst helping the UK meet its target of clean power by 2030.

That mission has started in earnest with the creation of Great British Energy to partner with the private sector and secure the investment needed to accelerate the transition, the sweeping away of barriers to onshore wind farms, and a record £1.5 billion budget for this year’s renewable energy auction to get Britain building green.

During her time in the US and Canada, Reeves has pointed out that the government has moved quickly to create a stable environment where businesses have the confidence to invest in the UK.

This has included reform of a planning system that has long frustrated investment, ending the ban on on-shore wind and the establishment of a National Wealth Fund, backed by £7.3 billion to catalyse further private investment in our world-leading green and growth industries of the future.

The UK is already Europe’s leading hub for investment, with UK markets raising more capital than the next two highest European exchanges combined in 2023.

The Chancellor visited North America with a renewed purpose to build upon this, with it being announced yesterday that Britain is to play host to the International Investment Summit on 14 October.

In doing so, Ms Reeves is looking to deepen the strong economic relationship between Britain and the two North American countries.

The United States is the largest source of foreign investment in the UK and the UK is the third largest investment destination for Canadian companies, whom invested more than $73 billion of FDI stock in 2021.

Chancellor vows ‘big bang on growth’ to boost investment and savings

BETTER-OFF BRITAIN?

  • Chancellor launches landmark review to boost investment, increase pension pots and tackle waste in the pensions system.
  • New Pensions Bill confirmed in King’s Speech could boost pension pots by over £11,000, with further consolidation and broader investment strategies to potentially deliver higher returns for pensions.
  • An investment shift in defined contribution schemes could deliver £8 billion of new productive investment into the UK economy.
  • Action will be taken to unleash the full investment might of the £360 billion Local Government Pension Scheme to make it an engine for UK growth.

The Chancellor Rachel Reeves has announced a landmark pensions review as part of the new Government’s mission to ‘boost growth and make every part of Britain better off’.

Under plans unveiled by the new Chancellor, billions of pounds of investment could be unlocked in the UK economy from defined contribution schemes alone and pension pots for savers in defined contribution schemes could be boosted by over £11,000.

The Review will also, working closely with the Minister of State at MHCLG, look at how to unlock the investment potential of the £360 billion Local Government Pensions Scheme, which manages the savings of those working to deliver our vital local services, as well as how to tackle the £2 billion that is being spent on fees.

The announcement comes ahead of the first Growth Mission Board on Tuesday. This will be chaired by the Chancellor and drive the Government’s work to achieve the highest sustained growth in the G7. New measures have already been announced to fix the planning system, the creation of a new National Wealth Fund and the overhaul of the listings regime to boost UK stock exchanges.

The work announced today – focusing on investment – is the first phase in reviewing the pensions landscape and will be led by the first ever joint Treasury and Department for Work and Pensions Minister, Emma Reynolds (Minister for Pensions). The next phase of the review starting later this year will consider further steps to improve pension outcomes and increase investment in UK markets, including assessing retirement adequacy.

The Chancellor and the Pensions Minister will chair a roundtable with the pensions industry on Monday to start intensive industry engagement for the Review.

Chancellor of the Exchequer Rachel Reeves said: “Despite a very challenging inheritance, this new Government is getting on with the job of delivering our mandate to get the economy growing so we can make every part of our country better off.

“The review we are announcing is the latest in a big bang of reforms to unlock growth, boost investment and deliver savings for pensioners. There is no time to waste. That is why I am determined to fix the foundations of our economy so we can rebuild Britain and improve people’s lives.”

Deputy Prime Minister Angela Rayner said: “After putting in years of hard graft serving their communities, the very least our frontline workers deserve – millions of whom are low paid, millions of whom are women – is dignity and security in retirement.

“That’s why we want to make sure their hard-earned money works harder for them so we ensure they receive the pensions they have earned, whilst unlocking growth across our economy.”

Pensions Minister Emma Reynolds said: “As the first ever joint Treasury and DWP Minister I am uniquely placed to tackle the twin challenges of productive investment and retirement outcomes.

“Over the next few months the review will focus on identifying any further actions to drive investment that could be taken forward in the Pension Schemes Bill before then exploring long-term challenges to ensure our pensions system is fit for the future.

“There is so much untapped potential in our pensions markets, with an industry worth around £2 trillion. The measures we have already set out in our Pension Schemes Bill will help drive higher investment and a better deal for our future pensioners.”

M&G plc CEO Andrea Rossi said: “A Pensions Review is long overdue and to be welcomed. M&G has a rich heritage of investing in the UK and there are significant opportunities ahead to give the real economy a boost over the next decade and beyond.

“We know from experience, through our PruFund offer, that a large pooled fund gives savers access to a wider range of productive assets that aims to maximise benefits over the long-term. Consolidation, combined with the role of advice, has huge potential to align the interests of savers with the UK’s growth ambition. We look forward to supporting the Government on this landmark review.”

BVCA Chief Executive Michael Moore said: “We are very encouraged that the Government has brought forward their Pensions Review so quickly.

“The Chancellor has a real opportunity to deliver economic growth by facilitating increased investment in UK businesses to the benefit of returns to pension savers as well as the wider economy.

“Legislative and policy changes, including further consolidation of pension schemes to increase pension schemes’ ability to deploy capital into UK private capital funds are vital, as is greater industry partnership.

“The BVCA’s Investment Compact has already brought together over 100 growth equity and venture capital firms committed to working with pensions schemes to consider effective structures that attract investment.”

Defined contribution schemes will be managing around £800 billion in assets by the end of the decade and the Review will explore ways to increase their investment into productive assets. Even a 1 percentage point shift of assets into productive investments could mean £8 billion of new productive investment to grow the economy and build vital infrastructure by the end of the decade.

This would also help savers using these schemes build up better retirement pots as productive assets are more likely to provide higher returns. Immediate action has already been taken to boost retirement savings through the Pensions Bill, which introduces a Value for Money Framework to promote better governance and achieve higher returns – boosting the pension pot of an average earner who saves over their lifetime in a defined contribution scheme by over £11,000.

The first stage of the review will examine actions to support greater productive investment and better retirement outcomes, including through further consolidation and encouraging at-scale schemes to increase returns through broader investment strategies.

The Local Government Pension Scheme (LGPS) in England and Wales is the seventh largest pension fund in the world, managing £360 billion worth of assets. Its value comes from the hard work and dedication of 6.6 million people in our public sector, mostly low-paid women, working to deliver our vital local services. Pooling this money would enable the funds to invest in a wider range of UK assets and the government will consider legislating to mandate pooling if insufficient progress is made by March 2025.

To cut down on fragmentation and waste in the LGPS, which spends around £2 billion each year on fees and costs and is split across 87 funds – an increase in fees of 70% since 2017, the Review will also consider the benefits of further consolidation.

The first stage of the review will report in the next few months and consider further measures to support the Pensions Bill. It will take account of the need to prioritise gilt market stability, liquidity and diversity. It will then broaden out to consider the wider pensions landscape to strengthen security in retirement. In the meantime, immediate action has been taken through new laws announced to Parliament in The King’s Speech.

Barclays CEO C. S. Venkatakrishnan said: “We welcome the Government’s timely review of the pensions sector.

“Pensions reforms are critical to unlocking institutional investment in growth equity, and alongside a streamlining of listing requirements, will give a significant boost to UK capital markets and growth. Building institutional demand is also an important signal in encouraging private share ownership.

Border to Coast CEO Rachel Elwell said: ““Our focus is on delivering a strong and sustainable LGPS to enable it to pay the pensions of the 6.6million local government workers in an affordable manner.

“Border to Coast has developed innovative and cost-effective investments, while cutting Private Market fees by almost 30%. There is an opportunity to build and expand on this, delivering greater value to local taxpayers, and delivering productive investment in the UK. We therefore welcome the opportunity to work with the Government on a co-ordinated review to deliver this.

“If the Government is ambitious and considers a wide range of options in this review we are optimistic that this will deliver the clear roadmap we have called for, building on the work of the BVCA’s Pensions and Private Capital Expert Panel.”

Chair of the Pensions & Private Capital Expert Panel and co-founder of IQ Capital Kerry Baldwin said: “An early and ambitious review of the pensions landscape is an extremely important step in prioritising returns for UK savers and driving economic growth.

“The Chancellor’s Pensions Review will add further impetus to the work of the Investment Compact for Venture Capital and Growth Equity, which has brought together the private capital and pensions industries to support pension savers and to encourage investment from pension funds into unlisted equities.

“There has been significant progress through this collaboration. We are already developing a greater understanding of the ways we can work together to deliver new options for UK pension savers at the same time as supporting high growth, innovative UK companies with new sources of capital.

“The Review offers us the opportunity to develop this shared agenda further and deliver better outcomes for all the stakeholders.”

TheCityUK CEO Miles Celic said: “Creating the right investment environment is critical both for improving people’s retirement incomes and for boosting growth across the UK.

“The government’s new Pensions Review will be an important mechanism to help deliver this. We look forward to working closely with government and regulators to ensure that an effective long-term strategy that supports financial resilience is developed.”

Fixing the Foundations

Chancellor unveils a new era for economic growth

  • Chancellor pledges she will take action to fix the foundations of the economy to make everyone, not just a few, better off.
  • Government to get Britain building by taking immediate action on planning reform and unblocking stalled sites to unlock thousands of homes.
  • Immediate removal of the de facto ban on onshore wind in England as government starts delivering on clean energy mission to cut bills for families and boost energy independence. 

The Chancellor yesterday (8 July) promised to take immediate action to fix the foundations of the economy, rebuild Britain and make every part of the country​ better off.

In her first speech as Chancellor, Rachel Reeves pledged to leaders of some of the UK’s pioneering industries to build growth on strong and secure foundations built on stability, investment and reform, and forged through a new partnership with the private sector.

Addressing the difficult economic inheritance this government faces, she committed to taking immediate action to drive sustained economic growth, the only route to improving the prosperity of our country and the living standards of working people.

Setting out her first steps to deliver on the government’s commitments in its manifesto that every action it takes will be based on sound money and economy stability, the Chancellor promised a new economic model that will grow the economy and keep taxes, inflation and mortgages as low as possible.

The Chancellor said had the UK economy grown at the average rate of OECD economies over the fourteen years from 2010, it would be £143.3 billion larger – worth £5,053 for every household in the country. This could have brought in an additional £58 billion in tax revenues in the last year alone to sustain our public services.

Taking decisive action, the government is today announcing a series of measures to lay the foundations for a dynamic, modern and growing economy, including taking urgent steps to build 1.5 million homes over the next five years and the immediate removal of the de facto ban on onshore wind in England, as part of its clean energy mission.

Chancellor of the Exchequer Rachel Reeves said: “Today I am taking immediate action to fix Britain’s economic foundations.

“By growing our economy we can rebuild Britain and make every part of the country better off.”

Deputy Prime Minister Angela Rayner said: ““Our country is under new management and a new era for economic growth will be built on secure foundations.

“The Chancellor and I will work in lockstep to kickstart the economy, unleashing housebuilding and powering local growth.

“Change starts now. We will unblock the bottlenecks and drive forward a transformational package to build the homes people need.”

Energy Security and Net Zero Secretary Ed Miliband said: “Every family has paid the price of the ban on onshore wind farms in higher energy bills.  This ban has undermined our energy security, put costs on people’s bills – especially those on lower incomes – and held us back in our fight against climate change.

“This Government is wasting no time in delivering the bold plan we need to take back control of our energy; boosting our energy independence and cutting bills for families as we tackle the climate crisis.

“Getting rid of this ban and giving priority for planning permission for much needed infrastructure sends an immediate signal to investors here and around the world that the UK is back in business, an immediate step in our mission to make Britain a clean energy superpower.”

The UK government is taking swift action on its central growth mission by announcing the following:

Planning

The government is taking swift action to identify and unblock key ‘stalled sites’ to get large housing schemes moving forward, starting with four sites across England to unlock over 14,000 homes: Liverpool Central Docks, Northstowe, Worcester Parkway and Langley Sutton Coldfield.

The Chancellor has also welcomed the Deputy Prime Minister’s commitment to make the economic benefit of development a central consideration when intervening in the planning system. This starts today by recovering two appealed planning applications for data centres in Buckinghamshire and Hertfordshire.

To facilitate this new approach, the Deputy Prime Minister will also write to local mayors and the Office for Investment to ensure that any investment opportunity with important planning considerations that comes across their desks is brought to her attention and to the Chancellor’s.

This will help to ensure the planning system can unlock major schemes from clean energy projects and transport infrastructure to film studios and art-entertainment venues.

The Chancellor has also confirmed that the government will support local authorities with 300 additional planning officers across the country. 

Further announcements will be made in the coming weeks to accelerate the development of housing and infrastructure, including launching a landmark consultation on an updated, growth-focused National Planning Policy Framework to include mandatory housing targets and a requirement to review greenbelt boundaries where necessary to meet them.

These will prioritise Brownfield and “grey belt” land for development to meet housing targets where needed, partnered with new ‘golden rules’ that will make sure the development this frees up will also deliver thousands of affordable homes, including more for social rent.

Critical major infrastructure

The current planning regime acts as a major brake on economic growth which is why the government will make the changes the country needs to forge ahead with new roads, railways, reservoirs, and other nationally significant infrastructure.

The government will set out new policy intentions for critical infrastructure in the coming months, ahead of updating relevant National Policy Statements within the next 12 months to provide certainty to industry. We will legislate to ensure they are updated at least every 5 years.

The government will also build on the Strategic Spatial Energy Plan which is being developed by the National Energy System Operator to speed up the roll out of clean power, and will seek to expand the use of spatial planning to other infrastructure sectors.

The Chancellor has asked the Secretaries of State for Transport and Energy Security and Net Zero to prioritise taking decisions on critical infrastructure projects which are with them now.

To go further, to help speed up delivery on infrastructure such as transport and energy, the government will review how it can unlock critical infrastructure, without weakening environment protections.

Alongside this, the government will make sure energy projects are prioritised in the planning system and consult on including onshore wind power developments in the Nationally Significant Infrastructure Projects (NSIP) planning regime.

Further details on ending the de facto ban on onshore wind will be set out later by the Department for Energy Security and Net Zero, and the Department for Levelling up, Housing and Communities.

Martha Lane Fox, President of the British Chambers of Commerce, said: “Fixing the foundations of the economy can provide businesses with the stability and certainty they need to unleash a wave of investment to create growth and new jobs.

“Labour’s pledges to create an industrial strategy, improve trade relations with the EU, and boost skills training all have capacity to make a huge difference. 

“Today’s commitment to deliver large scale infrastructure at greater pace, especially green energy projects and more housing where people want to live, is very welcome.

“But policy must be backed up with better skilled and resourced planning departments to deliver this step change. That’s why the pledge to fund an extra 300 planning officers is so important.

“It’s also why the BCC’s Planning Skills Fund has been set up in partnership with Government. It will develop an additional pipeline of new and upskilled planning talent to boost growth in our local economies.”

David Thomas, Chief Executive Officer, Barratt Developments’ said: “We welcome the Government’s commitment to reform of the planning system and their drive for growth.

“Building more new homes will bring huge economic and social benefits to the UK, and it is vital that local and central government are united with industry to plan positively to deliver high quality new homes and developments across the country.”

Keith Anderson, Chief Executive Officer, Scottish Power said: “I welcome the clear sense of urgency and direction set out by the Chancellor today.

“Prioritising clean energy infrastructure and building at speed and at scale will unleash strong economic growth across the country.

“If the UK can halve the time it takes to get renewables, electricity grid and storage projects through the planning system, we’ll look to double our investment over the coming years.”

Henrik L. Pedersen, Chief Executive Officer, Associated British Ports said: “Associated British Ports has an ambitious project pipeline of major investments in port infrastructure including supporting the development of floating offshore wind in Wales as well as green hydrogen and carbon capture and storage in the Humber.

“The right enabling measures from Government will unlock these developments at pace. In this regard the Chancellor’s speech is very welcome and encouraging.”

Mark Reynolds, Chairman & Chief Executive Officer, Mace Grop, Co-Chair of the Construction Leadership Council said: “Today’s announcements show a welcome proactive approach to tackling the delays to the planning system that are costing the UK up to £11bn a year in growth and hampering the delivery of the homes and infrastructure we sorely need.

“The focus on cutting the red tape to progress nationally important projects, such as data centres, combined with increased resourcing of the planning departments, will bring a renewed energy and focus to the construction sector.

“It’s particularly welcome to see the Chancellor has put this at the top of her agenda – we stand fully behind the delivery of the Government’s ambitions.”

Kate Kenny, Senior Vice President, Jacobs said: ““We greatly welcome the changes outlined by the Chancellor today to simplify the planning regime and unlock greater investment in critical national infrastructure projects.

“The updating of National Policy Statements will also play a major role in providing clarity and certainty of pipeline for industry and its supply chains to invest in the long-term skills required to deliver the clean energy, transport, water and other significant infrastructure projects that the UK requires for a prosperous future.”

Tom Glover, UK Country Chair, RWE said: “We fully support the new government’s focus on unblocking the planning system, and welcome commitments to prioritise taking decisions on critical national infrastructure projects as soon as possible.

“Ensuring that local authorities are properly resourced to deliver a real acceleration in planning approvals is also crucial – we therefore welcome the announcement to fund an additional 300 planning officers. 

“As a leading renewables developer we are also pleased that the government are moving swiftly to end the ban of onshore wind, in the long-term this means committing to bring projects over 50MW back into the Nationally Significant Infrastructure Projects (NSIPs) regime. We look forward to further information on this in due course”.

Andrea Rossi, Chief Executive Officer, M&G said: “As a major investor in the real economy we welcome efforts to provide long-term policy certainty and the ambition to get Britain building. Speed and ambition are crucial.

“By providing clarity on infrastructure priorities, combined with a swifter planning system, we can deliver investment, kick-start the economy and secure good returns for UK pension policy holders.”   

Chris Cummings, Chief Executive Officer, The Investment Association said: “The Investment Management industry strongly supports the Chancellor’s ambition to drive economic growth. There is more our industry can do to support the UK economy and its people, and we are ready to work with the new government to achieve this.  

“Investment is the engine of economic growth, and our industry supports the government in finding innovative ways for more capital to be channelled into thriving British businesses and infrastructure projects. Removing blockers in the planning system will be key to this.

“It is vital we open straightforward ways for pension funds to invest in the housing, transport and energy projects we all rely on by removing regulatory obstacles and overturning the culture of “safetyism” that has curtailed economic growth.” 

Rob Perrins, Chief Executive Officer, Berkeley Group said:  “We’re hugely encouraged to see the clear priority and focus on housing delivery as part of the Government’s mission for growth.

“Today’s announcements are a very positive start and we will continue to work closely with Government to help unlock the potential of brownfield regeneration sites to deliver good green homes, both affordable and private. Reviving urban land has a vital role to play in driving the sustainable growth and productivity our country needs.”

Nick Jansa, Executive Managing Director EMEA, Ontario Teachers’ Pension Plan said: “We welcome the government’s announcement today on improvements to the planning system and removing barriers to investment in growing the UK’s critical infrastructure.”

Chancellor: ‘I will take the difficult decisions to deliver growth’

Rachel Reeves: ‘No time to waste’

  • Chancellor Rachel Reeves will vow to “fix the foundations of Britain’s economy” to make every part of Britain better off.
  • In her first major speech, the Chancellor will declare economic growth is “a national mission” and promise to take the tough decisions to deliver on the Government’s mandate.
  • She is expected to announce swift changes to unblock infrastructure and private investment.

The Government will take the difficult decisions to deliver growth, Rachel Reeves will say in her first speech as Chancellor today.

Business leaders from some of Britain’s most pioneering industries – including its financial services and green industries – are expected to be in attendance in central London to hear Ms Reeves vow to “fix the foundations of our economy so we can rebuild Britain and make every part of our country better off.”

Rachel Reeves will say there is “no time to waste” on delivering change, pledging to reverse “the legacy of fourteen years of chaos and economic irresponsibility”.

The Chancellor is expected to say: ““Last week, the British people voted for change. And over the past 72 hours I have begun the work necessary to deliver on that mandate.

“Our manifesto was clear: ‘Sustained economic growth is the only route to improving the prosperity of our country and the living standards of working people.’

“Where governments have been unwilling to take the difficult decisions to deliver growth – or have waited too long to act – I will deliver.

“It is now a national mission. There is no time to waste.

“This morning I want to outline the first steps this new government has taken to fix the foundations of our economy, so we can rebuild Britain and make every part of our country better off.

“We face the legacy of fourteen years of chaos and economic irresponsibility. 

“New Treasury analysis I requested over the weekend exposed the opportunities lost from this failure.

“Had the UK economy grown at the average rate of OECD economies since 2010, it would have been over £140 billion larger.

“This could have brought in an additional £58 billion in tax revenues last year alone to sustain our public services.

“It falls to this new Government to fix the foundations.”

Surgeons Quarter reports record breaking month

EDINBURGH based event and hospitality venue is thriving as it records its most successful business period to date after hitting record numbers during the Edinburgh International Festival

Surgeons Quarter (SQ), one of Edinburgh’s largest Fringe performing spaces, boasted a record 250,000 visitors to the Royal College of Surgeons of Edinburgh’s (RCSEd) campus and increased occupancy to an impressive 99.5% at its on-site, Ten Hill Place Hotel across the month of August. 

As the commercial arm of RCSEd, SQ worked closely with renowned festival producers theSpaceUK to host 248 productions across its 11 on site Fringe venues.  

Scott Mitchell, Managing Director of SQ said: “The buzz in Edinburgh during the Fringe this year was incredible. To see our venues, and Edinburgh, transform into a hive of creativity and culture was very special. 

“Each year we continue to grow and we’re incredibly proud of what we have achieved this year with record numbers coming in.  

“Working with such a talented organisation such as theSpaceUK again this year has been extremely rewarding and we’re delighted with how well received each show was at this year’s Fringe. 

“This year we have been able to host nearly 250 shows, with 120,000 audience members, which is just incredible. While the numbers are astounding, it is only testament to the quality of entertainment and service of those who performed and worked with us this year.” 

Celebrating its 14th year as one of the largest Fringe venues, SQ operated five festival bars, and transformed its Courtyard Bar and Hill Square Gardens into a fiesta of flavour with Mexican street food created by SQ’s Executive Chef Dominik Kawalec. 

This year’s line-up included shows from across the globe with musical performances, operas, drama and theatre shows as well as comedy and spoken word.  

Surgeons Quarter, Cafe 1305 Scott Mitchell – Managing Director

Scott continued: “None of this would have been possible without our fantastic, dedicated team, who worked incredibly hard to deliver top service across our venues throughout such a busy period. 

“Whilst delighted with our increased footfall a key point of action for next year is to find a solution to either the increased recycling or use of re-usable products in an outdoor environment to adhere to our licencing conditions and sustainability agenda. 

“I’d like to extend my thanks to not only those who worked with us, but to those who visited our venues and helped create a truly unique atmosphere in a Fringe that will live long in the memory.” 

The 2023 Edinburgh Festival Fringe welcomed worldwide audiences, selling nearly 2.5 million tickets across 288 venues.  

SQ will now turn its focus to the upcoming festive season, hosting 80s themed party nights throughout December offering a three-course meal, festive cocktail and wine for £60pp, and private parties from £65pp. 

Surgeons Quarter promotes, sells and manages all commercial activities held within the RCSEd campus. It includes facilities for conferences, meetings, private events, parties, weddings and its own four-star hotel Ten Hill Place as well as Café 1505 and SQ Travel. 

Profits from the Surgeons Quarter portfolio go towards the advancement of surgery and the improvement of patient outcomes worldwide. 

More information about Surgeons Quarter can be found at: 

https://www.surgeonsquarter.com/