The Scottish Ministerial Code has been updated to further strengthen transparency and propriety.
Updates to the Code include:
New text reflecting the updates to the procedure for handling complaints by civil servants about the behaviour of a Minister or former Minister, making clear that for future complaints certain information about concluded cases will be made public, including the Minister’s name, the nature of the complaint and the outcome of the complaint, even after a Minister has left office, and setting out the obligation on Ministers to cooperate with the procedure.
The introduction of an annual review of Ministers’ private interests, and proactive publication of these interests on an annual basis, to enhance integrity and transparency around actual or perceived conflicts of interest. In addition, new text has been introduced to provide additional clarity for Ministers on managing overlaps between their Ministerial responsibilities and constituency interests.
General updates on provisions for maternity leave and to reflect the introduction of the Bute House Agreement, as well as minor amends to take account of digital developments, new published strategies and changes in Ministerial titles and responsibilities.
The First Minister Humza Yousaf said: “This new edition of the Ministerial Code sets the highest standards of propriety and transparency for Government Ministers.All Scottish Ministers, including myself, are bound by its terms and are committed to uphold the Principles of Public life, ensuring integrity, accountability and honesty at every level of leadership.
“Scottish Ministers are committed to building a better future for the people of Scotland while facing the profound challenges of our time. This will mean taking some tough decisions to ensure that we support those in greatest need, and it is vital that we are guided in this mission by a clear set of principles.”
Increased tax relief to boost Britain’s animated film production
Measure is “about backing business to innovate and grow the UK economy”
Draft legislation also published to clarify design details underpinning a simplified Research and Development Scheme
Animated film productions in the UK are set for a boost as the government reveals increased tax relief, to take effect from 1 January 2024.
The creative industry has grown at more than 1.5 times the rate of the wider economy over the past decade, making it an important sector for the Chancellor’s plan to grow the economy.
The new tax changes announced today are expected to be worth £5 million each year to business and come alongside the Audio-Visual Expenditure Credit which was uplifted at budget from 33.33% to 39%. This also follows the Creative Industries Sector Vision published last month which set an ambition to grow the creative industries by an extra £50 billion by 2030.
These changes are a key part of the government’s plan to get the economy growing and make the UK the best place in the world to start and grow a business.
Financial Secretary to the Treasury Victoria Atkins said: “We want the UK to be the best place to start and grow a business and while we have the lowest corporation tax rate in the G7, we are not complacent.
“The changes we are making are about backing business to innovate and grow the UK economy, creating good jobs across the country.”
This measure is part of 23 tax announcements published as part of the government’s ‘Legislation Day’, where draft legislation for an upcoming Finance Bill is published, as well as technical tax documents and consultations mostly from measures announced at the Spring Budget.
Also published is the proposed design for a simplified R&D scheme, which would be born out of a merger from two previous schemes, as well as draft legislation also published to cement a further new £500 million per year scheme to support 20,000 R&D intensive SMEs.
A final decision will be made in the Autumn on whether to merge the Research and Development Expenditure Credit and Small Medium Enterprise relief schemes to form a new scheme. A merged scheme would simplify the system, by creating a single set of qualifying rules, and giving clarity on how much could be claimed before claims are made.
On Legislation Day the government also announced that:
From today, any Ukrainian who has arrived in the UK under the Family, Sponsor and Extension Ukrainian visa schemes will no longer need to register or tax their vehicle. This will last 36 months, in line with the length of their visas, and can be applied retrospectively from one’s arrival, potentially saving them hundreds of pounds.
Income tax will be exempt on payments made under the Family Network Support Package, which are aimed to keep children out of state care and in their family network where appropriate and in their best interests. The Department for Education will set out further details on the pilot scheme in the summer.
It will simplify the process so people who need to start paying the High Income Child Benefit Charge will not need to fill out a Self-Assessment form to pay the charge, but will be able to do it through their tax code. HMRC will set out in due course how it will do this.
The House of Commons adjourned on Thursday 20 July for summer recess and will next sit on Monday 4 September at 2.30pm.
TUC condemns Tory “wrecking ball” to right to strike and says it won’t rest until the legislation is repealed
Union body urges employers to do “everything in their power” to avoid using this counterproductive legislation to settle disputes
The TUC has vowed to fight the anti-strike bill “tooth and nail” as the legislation passed its final parliamentary stage.
The union body said the Conservatives were threatening to “take a wrecking ball” to the fundamental right to strike – adding that “unions won’t rest” until the legislation is repealed.
The Strikes (Minimum Service Levels) Bill will soon receive Royal Assent and make its way onto the statute book as the legislation passed in the House of Lords – after several previous defeats.
The Bill will mean that when workers lawfully vote to strike in health, education, fire, transport, border security and nuclear decommissioning, they could be forced to attend work – and sacked if they don’t comply.
1 in 5 workers
TUC research found a massive 1 in 5 workers in Britain – or 5.5 million workers – are at risk of having their right to strike undermined. The legislation gives ministers sweeping powers to impose strike restrictions in any service within those extremely broad sectors.
The UK’s actions have already come under scrutiny from international organisations. The UN workers’ rights watchdog, the ILO, recently slapped down the UK government over its anti-union agenda and demanded it respect international law.
The Bill will give ministers the power to impose new minimum service levels through regulation, but ministers have given few details on how they intend minimum service levels to operate.
Humiliating defeat
The government is rushing this latest legislation onto the statute book just days after a “humiliating defeat” on its agency worker regulations – as the High Court deemed the regulations unlawful.
The “strike-breaking” regulations were brought in last summer and allow agencies to supply employers with workers to fill in for those on strike.
The High Court ruled that the then Secretary of State for Business, Energy and Industrial Strategy, Kwasi Kwarteng, failed to consult unions, as required by the Employment Agencies Act 1973 – quashing the 2022 changes.
The TUC has accused the government of adopting the same “reckless approach” with its anti-strike bill.
TUC General Secretary Paul Nowak said: “The Conservatives are threatening to take a wrecking ball to our fundamental right to strike.
“No one should be sacked for trying to win better pay and conditions at work – especially in the middle of a cost-of-living crisis. But that is exactly what this draconian legislation will allow.
“These new laws will give ministers the power to snatch away the right to strike from a massive 1 in 5 workers – that’s 5.5 million people.
Commenting on the ongoing campaign against the bill, Paul added: “Make no mistake. The TUC will fight this pernicious legislation tooth and nail – exploring all options including legal routes.
“We won’t stand by and let workers get sacked for defending their pay and conditions. And we won’t rest until this bill has been repealed.
“It’s unworkable, undemocratic and almost certainly in breach of international law.
“After the government’s humiliating defeat in the High Court over its unlawful attempt to undermine the right to strike, ministers should spare themselves further embarrassment.
“Every employer must reject this blatant attempt at union busting. That means doing everything in their power to avoid using this counterproductive legislation – it will only poison industrial relations and drag out disputes.
“Our message is loud and clear. The entire trade union movement will rally behind any worker sacked for exercising their fundamental right to strike.”
On Labour’s plans to repeal the legislation in its first 100 days, Paul said: “The right to strike is a fundamental British liberty – Labour gets this. That’s why they have done the right thing and promised to repeal this nasty legislation at the earliest opportunity.”
First Minister calls for action to end uncertainty on Acorn Project
First Minister Humza Yousaf has called on the UK Government to give the go-ahead for the Acorn carbon capture and storage (CCS) project to enable Scotland to ramp up its transition to clean energy.
On a visit to Peterhead Power Station, the First Minister said that the Scottish Government is wholly committed to supporting the Acorn Project, and urged the UK Government to set out its plans and end uncertainty for investors and stakeholders.
The project, based in Aberdeenshire, would take captured CO2 emissions from industrial processes across the country and store it safely under the North Sea.
The First Minister added: “Scotland’s net-zero future is being held back by UK Government dithering and delay.
“The Acorn scheme should be given approval now, so that we can take advantage of our unrivalled access to a vast CO2 storage potential and our opportunities to repurpose existing oil and gas infrastructure. CCS will play a pivotal role in achieving a just transition for our workforces, capitalising on existing world-leading skills and expertise to create many good, green jobs in the coming years.
“Despite the UK Government confirming in March that Acorn is ‘best-placed’ to meet the eligibility to be awarded Track-2 status, which would allow access to financial support from the UK Government, they continue to fail to provide a clear timetabled solution for the next stages of the process. This is entirely unacceptable and layers further uncertainty on top of never-ending delays which are impacting investor confidence and which compromise our climate-change commitments and just-transition ambitions.
“Acorn’s target of capturing and storing up to five million tonnes of CO2 annually by 2030 is critical to Scotland’s plans to achieve net zero by 2045, ahead of the rest of the UK. The scheme will also help the UK Government to deliver on its commitments.
“While the UK Government prevaricates, we have already established a £500 million Just Transition Fund for the North East to build on the region’s world-renowned expertise and ingenuity, to create jobs, foster innovation and support the region to deliver a fair and managed transition to net zero.”
Catherine Raw, Managing Director of SSE Thermal, who are part of the Scottish Cluster group of industrial companies backing the capture and permanent storage of CO2 emissions, said: “To unlock the potential of Peterhead and the wider region, it is vital that the Scottish Cluster is brought forward urgently, allowing the development of decarbonisation projects to be accelerated and Scotland’s net-zero ambitions to be met.
“Doing so will not only help us meet our energy goals, it will also support industries and provide a fair and just transition for workers and communities across the North East of Scotland, including at Peterhead.
“SSE have set out plans to invest up to £40 billion in the next decade, including more than £21 billion in Scotland alone. Renewables will be at the heart of that investment but we also recognise the need for flexible generation to provide backup when the wind doesn’t blow and the sun doesn’t shine. Our existing Peterhead station fulfils that role today, playing a critical role in Scotland’s energy system.”
Tata Group announces new multibillion-pound electric car battery factory to be built in the UK – one of the largest ever investments in the UK automotive sector.
Investment will create up to 4,000 new direct jobs, and thousands more in the wider supply chain – driving forward the Prime Minister’s priority to grow the economy.
New gigafactory set to provide almost half of the battery production needed by 2030 – turbocharging UK’s switch to zero emissions vehicles.
The UK has been chosen as the home of Tata Group’s first ‘gigafactory’ outside India, in a move set to create thousands of jobs and bring a huge boost to the UK’s automotive sector.
Tata Group confirmed the UK had secured one of the largest ever investments in the UK auto industry today (19 July). The gigafactory will secure UK-produced batteries for another Tata Sons investment, Jaguar Land Rover, as well as other manufacturers in the UK and Europe.
The new gigafactory, at 40GWh, will be one of the largest in Europe. It will create up to 4,000 highly skilled jobs, as well as thousands of further jobs in the wider supply chain for battery materials and critical raw minerals, helping grow the economy and take forward the UK’s commitment to net zero.
Prime Minister Rishi Sunak said:“Tata Group’s multi-billion-pound investment in a new battery factory in the UK is testament to the strength of our car manufacturing industry and its skilled workers.
“With the global transition to zero emission vehicles well underway, this will help grow our economy by driving forward our lead in battery technology whilst creating as many as 4,000 jobs, and thousands more in the supply chain.
“We can be incredibly proud that Britain has been chosen as home to Tata Group’s first gigafactory outside India, securing our place as one of the most attractive places to build electric vehicles.”
Mr N Chandrasekaran, Chairman, Tata Sons, said: “The Tata Group is deeply committed to a sustainable future across our business.
“Today, I am delighted to announce the Tata Group will be setting up one of Europe’s largest battery cell manufacturing facilities in the UK. Our multi-billion-pound investment will bring state-of-the-art technology to the country, helping to power the automotive sector’s transition to electric mobility, anchored by our own business, JLR (Jaguar LandRover).
“With this strategic investment, the Tata Group further strengthens its commitment to the UK, alongside our many companies operating here across technology, consumer, hospitality, steel, chemicals, and automotive.
“I also want to thank His Majesty’s Government, which has worked so closely with us to enable this investment.”
The investment of over £4 billion represents a historic moment for the UK’s growing electric vehicles industry.
The new gigafactory will supply JLR’s future battery electric models including the Range Rover, Defender, Discovery and Jaguar brands, with the potential to also supply other car manufacturers. Production at the new gigafactory is due to start in 2026.
This investment will be crucial to boosting the UK’s battery manufacturing capacity needed to support the electric vehicle industry in the long term. With an initial output of 40GWh it will also provide almost half of the battery production that the Faraday Institution estimates the UK will need by 2030.
Business and Trade Secretary Kemi Badenoch said: “Today’s multibillion-pound investment demonstrates that this Government has got the right plan when it comes to the automotive sector.
“We are backing the UK car industry to help grow our economy as we transition to electric vehicles, and this latest investment will secure thousands of highly-skilled jobs across the country.
“Tata’s decision is a major vote of confidence in UK automotive. The Government is committed to making the UK one of the best places in the world for automotive investment, as evidenced by the Automotive Transformation Fund, the British Industry Supercharger, and the strong programme of support for research and development.”
Chancellor of the Exchequer Jeremy Hunt said:“This is a huge vote of confidence in the UK and one that will drive growth in our economy, creating thousands of jobs and powering our transition to electric cars.
“Tata Group’s gigafactory builds on the strength of our manufacturing industry and shows we’re on the right track, backing the sectors that will underpin our future prosperity for decades to come.”
Energy Security Secretary Grant Shapps said: “Today’s announcement from Tata is excellent news. We have been working tirelessly with the company, and across government, to make the case for why the UK is the best place for them to invest.
“This new gigafactory puts us firmly in the fast lane to becoming the capital of Europe’s electric car market, and makes crystal clear how they see the UK as the place to be for their future growth.
“With thousands of jobs on site and in the supply chain, this new factory will be the cornerstone of our automotive industry, backing manufacturers to develop and expand, and customers to make the switch from petrol and diesel.”
Scottish Labour MSP Sarah Boyack has branded the SNP government’s consultation on Council Tax a “scandal”, revealing that the changes would hit 92,971 households in Edinburgh.
The SNP government is currently consulting on plans to hike Council Tax for properties in bands E to H – which would hit 39% per cent of households in Scotland’s capital.
People in the area could face increases of up to around £800.
This consultation follows years of ‘brutal’ budget cuts to Council budgets by the SNP government.
Scottish Labour MSP Sarah Boyack said: “Years of brutal cuts by the SNP has local services in [AREA] at breaking point, and now the government wants to plug the gaps with eye-watering Council Tax hikes of up to around £800.
“It is a scandal that ordinary Scots are once again being asked to pay more while getting less in return.
“This damaging Council Tax bombshell will hit more than 92,000 households in Edinburgh during the worst cost of living crisis in decades, piling pressure on people already facing impossible financial decisions.
“Scots struggling with rising housing costs should be getting support from their government – but instead they are being asked to foot the bill for the SNP’s failure.
“Labour will stand up for people struggling with soaring living costs and fight for a fair deal for Edinburgh.”
BUT WHAT WOULD LABOUR ACTUALLY DO? REPLACE THE COUNCIL TAX? – Ed.
Chancellor outlines reforms to boost pensions and increase investment in British businesses
the ‘Mansion House Reforms’ could unlock an additional £75 billion for high growth businesses, while reforms to defined contribution pension schemes will increase a typical earner’s pension pot by 12% over the course of a career
comprehensive reforms will increase pension pots by as much as £16,000
The reforms will also unlock up to £75 billion of additional investment from defined contribution and local government pensions, supporting the Prime Minister’s priority of growing the economy, and delivering tangible benefits to pensions savers.
The United Kingdom has the largest pension market in Europe, worth over £2.5 trillion. Over the past ten years Automatic Enrolment has helped an extra ten million people save for their futures, with £115 billion saved in 2021, but how this money is invested is limiting returns for savers. Comparable Australian schemes invest ten times more in private markets than UK schemes, reaping the rewards that UK savers are missing out on.
To level the playing field, the Chancellor and the Lord Mayor have supported an agreement between nine of the UK’s largest Defined Contribution pension providers, committing them to the objective of allocating 5% of assets in their default funds to unlisted equities by 2030. These providers represent over £400 billion in assets and the majority of the UK’s Defined Contribution workplace pensions market.
This could unlock up to £50 billion of investment in high growth companies by 2030 if all UK Defined Contribution pension schemes follow suit.
More effective investments by defined contribution pension schemes will also increase savers’ pension pots by up to 12%, or as much as £16,000 for an average earner.
Chancellor of the Exchequer Jeremy Hunt said:“British pensioners should benefit from British business success. By unlocking investment, we will boost retirement income by over £1,000 a year for typical earner over the course of their career.
“This also means more investment in our most promising companies, driving growth in the UK.”
Secretary of State for Work and Pensions Mel Stride said:“British workers should have the confidence that their pension savings are working as hard as they are.
“Our reforms will benefit savers and society – unlocking investment into pioneering UK businesses, growing the economy, and helping the record number of people in this country saving into a pension to achieve the retirement they want.”
The Chancellor’s Mansion House Reforms will also deliver better returns for savers through a new Value for Money Framework which will make clear that investment decisions made by pension firms should be based on overall long-term returns and not simply costs. Pension schemes which are not achieving the best possible outcome for their members will be wound up into larger, better performing schemes.
Analysis shows that over a five-year period there can be as much as 46% difference between the best and worst performing pension schemes. This means that a saver with a pot of £10,000 could have notionally lost £5,000 over a 5-year period from being in a lowest performing scheme.
The Mansion House Reforms will be guided by the Chancellor’s three golden rules: to secure the best possible outcome for pension savers; to always prioritise a strong and diversified gilt market as we seek to deliver an evolutionary, rather than revolutionary, change in our pensions market; and to strengthen the UK’s position as a leading financial centre to create wealth and fund public services.
To ensure that the money unlocked by these reforms is invested quickly and effectively, the Chancellor has asked the British Business Bank to explore the case for government to play a greater role in establishing investment vehicles, drawing upon the BBB’s skills and expertise.
This will complement the £250 million of support that government has made available through the Long-term Investment for Technology and Science (LIFTS) initiative to incentivise new industry-led investment vehicles.
The government will also encourage the establishment of new Collective Defined Contribution funds which can invest more effectively by pooling assets as well as launch a call for evidence to explore how we can support pension trustees to improve their skills, overcome cultural barriers and realise the best outcomes for their pension schemes and subsequently their members.
Defined Benefit pensions
For the Local Government Pension Schemes a consultation will be launched on setting an ambition to double existing investments in private equity to 10%, which could unlock £25 billion by 2030. The consultation proposes a deadline of March 2025 for all Local Government Pension Scheme funds to transfer their assets into LGPS pools and setting a direction that each pool should exceed £50 billion of assets.
To improve outcomes for savers in a highly fragmented market, with over 5,000 Defined Benefit Schemes, the government will set out its plans on introducing a permanent superfund regulatory regime to provide sponsoring employers and trustees with a new way of managing Defined Benefit liabilities.
A new call for evidence will also launch tomorrow on the possible role of the Pension Protection Fund and the part Defined Benefit schemes could play in productive investment whilst securing members’ interests and protecting the sound functioning and effectiveness of the gilt market.
Capital Markets
The UK has the largest stock market in Europe and one of the deepest in the world – the London Stock Exchange had the most Initial Public Offerings (IPOs) outside of the US in 2021.
A comprehensive set of reforms will help attract the fastest growing companies in the world to grow and list in the UK. Prospectuses will be simplified, another milestone of Lord Hill’s UK Listing Review, replacing the EU’s outdated regime.
Firm’s prospectuses for investors will be easier to produce, more accessible and understandable, saving companies time and money and attracting more firms to do business in the UK.
Protectionist rules inherited from our time in the EU will be abolished. The Share Trading Obligation and Double Volume Cap have held back UK businesses and will be removed so firms can access the best and most liquid markets anywhere in the world.
The government has also accepted all of Rachel Kent’s Research Review published today, paving the way for a new ‘Research Platform’ that will provide a one-stop-shop for firms looking for research experts. It also sets the path for potentially removing the unbundling rules – an inherited EU law that requires brokers to charge a separate fee for research.
The Chancellor will set out plans to establish an entirely new kind of stock market that allows private companies to access capital markets without floating on a stock exchange. This ‘Intermittent Trading Venue’ would be a world first and will help firms grow and boost the UK economy. It will be complemented by a move to make shares fully digital rather than written on paper, saving businesses time and money.
This builds on the Chancellor’s Edinburgh Reforms and Solvency II reforms which will unlock over £100 billion of productive investment from insurance firms across the UK over a decade.
Seizing the opportunities of the future
To ensure the continued success of the UK’s world-leading financial services sector, firms must be ready to innovate faster, with regulators willing to support them as they do.
Following the Financial Services and Markets Act 2023 passing into law, the government has announced that it is commencing repeal of almost 100 pieces of unnecessary retained EU law for financial services, further simplifying the UK’s regulatory rulebook.
The government launched an independent review into the future of payments – led by Joe Garner, former Chief Executive Officer of Nationwide Building Society – to help deliver the next generation of world class retail payments, including looking at mobile payments.
The government also welcomes a report suggesting ways to move to fully digital shares, scrapping outdated paper-based shares. This will make markets more efficient and modernize how people own shares.
Further information
The Mansion House Compact members are: Aviva; Scottish Widows; L&G; Aegon; Phoenix; Nest; Smart Pension; M&G; Mercer.
The package of reforms announced yesterday could help increase pension pots for an average earner who starts saving at 18 by 12% over their career – over £1,000 more a year in retirement – all whilst supporting UK economy, businesses, and employment.
Analysis shows a difference in returns between schemes over a 5-year period of up to 46% in some cases. This means that a saver with a pot of £10,000 could have notionally lost £5,000 over a 5-year period from being in a lowest performing scheme.
Reaction to the Chancellor’s Mansion House Reforms
Jamie Dimon, Chairman & CEO, JPMorgan Chase said:“Great financial centers stay competitive by responding to the market and evolving through the kinds of important iterations that the Chancellor has announced.
“It’s also good to see the U.K. preparing for the industries of tomorrow considering the great promise of life sciences and A.I. as cornerstones of the economy in the years to come.”
Sir Jon Symonds CBE, Chair, GSK said:“I welcome these important reforms which will further strengthen the UK capital markets and support economic growth.
“The changes will help increase investment returns for pension savers through improved access to all asset classes including in high growth sectors, and ensure the UK’s most innovative companies are better supported by UK capital to stay in this country as they scale to maturity.”
Brent Hoberman, Executive Chairman & Co-Founder, Founders Forum, Founders Factory said:“The planned pension reforms will enable for capital to be productively invested in funds and scaleup companies in the UK.
“This should be welcome news to the UK industries of the future, their ability to attract more capital will create more national champions and generate growth, jobs and increased tax revenue.
“The reforms will enable the UK to build on the positive momentum in these key parts of the economy drive further synergies between it’s world class financial institutions and entrepreneurial base.”
C. S. Venkatakrishnan, Group Chief Executive, Barclays said:“The UK has needed a bold, forward-looking policy agenda and industrial strategy to grow the economy.
“These Mansion House Reforms are an important step in the right direction in mobilising private capital to support growth and innovation.”
Irene Graham OBE, CEO, ScaleUp Institute said:“The package of measures announced by the Chancellor today are very much welcomed by the ScaleUp Institute.
“They contain significant and innovative solutions which will help to enable easier and simpler access to capital markets and patient growth capital. These new initiatives, coupled with the reforms already underway, will support and fuel the global ambitions of our scaleups, and high-potential scaling businesses, across all sectors and all areas of the UK.”
Miles Celic, Chief Executive Officer, TheCityUK, said: ““The competitiveness and attractiveness of any successful international financial centre must, by definition, always be a work in progress. The Chancellor is right to be ambitious in building on the UK’s successes and recognising that we can’t afford to be complacent.
“The Mansion House Reforms are ambitious, pragmatic and necessary. They will underpin the UK industry’s future success. Most importantly, their main beneficiaries will be the British people, who will gain from greater investments in growing businesses, revitalising communities and improving retirements.”
Chris Hulatt, Co-Founder, Octopus Group said: ““We welcome government’s efforts to make the UK a more attractive place to start a business, and support measures that provide additional opportunities for private companies to raise capital.
“Finding new ways for the most skilled and talented entrepreneurs to access capital as they build businesses is fundamental to helping the UK maintain its place as the best place to start, build and scale a business.”
Noel Quinn, Group Chief Executive, HSBC said:“I welcome the strong and comprehensive package of measures announced by the Chancellor in his Mansion House speech.
“Unlocking equity to support companies in innovative high-growth sectors such as technology and life sciences is vital to the future growth of the UK economy.”
Lord Mayor, Nicholas Lyons said: ““These reforms and the Mansion House Compact mark a historic turning point that will accomplish the dual aim of securing a brighter future for retirees and channelling billions into our economy.
“I’m proud to have convened key industry players to make this commitment to unlock £50bn in capital by the end of the decade which will improve returns for pension savers and support firms to grow, stay and list in the UK.”
Tim Orton, Chief Investment Officer, Aegon UK said: ““Aegon UK is proud to be a founder signatory of the Mansion House Compact which will help deliver better long-term outcomes for our customers.
“We are committed to ensuring our customers can access and share in the growth and success of innovative companies we invest in. We will use our scale and expertise to develop investment solutions seeking to improve the retirement outcomes of the millions of members of the defined contribution pension schemes we support. The Compact will also create opportunities that help deliver our climate targets as we progress towards net zero.”
Sir Nigel Wilson, Group CEO, Legal & General said:“As the UK’s largest manager of money for pension clients, L&G is pleased to support the ambition set by the Compact.
“Increasing investment in science, technology and infrastructure will support better returns for the tens of millions saving for their retirement, as well as stimulate much needed long-term growth for the UK economy.”
Mark Fawcett, CEO, Nest Invest said:““For many years now, illiquid assets have been integral to diversified DC pension schemes around the world.
” It’s been a key driver behind Nest setting up our own private market mandates to ensure our members aren’t missing out. Nest will continue to increase our investment in unlisted equities, helping our 12 million members benefit from the strong returns these types of deals can typically offer.”
Ruston Smith, Chair, Smart said: ““Smart Pension is committed to securing better outcomes for long-term savers. Giving UK savers access to higher net returns by investing in unlisted equities, including innovative, high-growth UK companies as part of a well diversified portfolio, will deliver these outcomes over time.
“We are pleased to be a signatory of the Mansion House Compact and, as a successful British fintech, we are proud to be supporting the country’s technology sector, helping home-grown start-ups and scale-ups to flourish and thrive.”
Scottish Widows, CEO, Chirantan Barua said: ““The industry needs to modernise the investment options available to customers.
“With the right consumer protections in place, the proposals announced today could make a huge difference to our customers and the wider UK economy. I’m proud that Scottish Widows is a founding signatory of the Mansion House Compact.”
Phil Parkinson, Investments and Retirement Leader, Mercer said:“Mercer supports proposals that lead to improved pension scheme member outcomes.
“As a global investment solutions provider, we see first-hand the value that illiquid asset allocations can bring to investors’ portfolios from a risk and a return perspective and are in favour of initiatives designed to unlock this asset class for DC members.”
Edward Braham, Chair, M&G said:“Patient capital put to work in companies or projects over multiple decades is essential to support economic growth and importantly, capture value for people’s pensions as they save for their retirement.
“M&G’s heritage is in investing in private markets, whether it is through infrastructure, real estate or innovative companies with purpose. We are democratising access to private markets through the Prudential With Profits Fund, and are supportive of DC pension reforms that encourage more investment of this kind that has potential to result in positive outcomes for savers.”
Mike Eakins, Chief Investment Officer, Phoenix Group said:““We are proud to sign the Compact, which is an important step to allow UK long-term savers to invest in a more diversified portfolio, giving them access to the potential returns of a broader range of assets, in line with their international counterparts.
“Currently, only 9% of UK pension funds are invested in alternative assets as compared to 23% in other major pensions markets. With the right regulatory environment, Phoenix Group could invest up to £40 billion in sustainable and/or productive assets to support economic growth, levelling up and the climate change agenda whilst also keeping policyholder protection at its core.”
Figures revealed by the Labour Party show that 51,7000 homes in Edinburgh will be affected by eye-watering mortgage rises, with those remortgaging next year paying £280 more a month.
Across Scotland, 546,600 households in Scotland will be paying an average of £190 more a month on their mortgages next year.
The news follows interest rates rising for the 13th time in June, increasing the painful squeeze on family finances.
Ahead of visiting Centrica Green Skills Centre in Glasgow, Labour’s Shadow Chancellor Rachel Reeves said the party would not stand by as Scots facing the failures of both the Tories and the SNP.
Commenting, Scottish Labour MSP for Lothian Sarah Boyack MSP said: “People in Edinburgh are feeling the crushing weight of the Tory mortgage bombshell and the SNP’s incompetence.
“On the one hand, the Tories have shown time and time again that they simply don’t care about people facing hard, impossible choices; they don’t care about the relentless toll the cost of living emergency has taken on so many lives.
“And on the other, we have an SNP Government that is just not up to the job – too distracted by the scandal in their own party ranks.
“Labour’s Mortgage Rescue Scheme will offer practical help to ease the financial burden and will provide support to those in need.
“Our plan will pave the way for a brighter, prosperous and fair future for Edinburgh and the whole of Scotland.”
Local authority
Number affected by 2026
Average Increase in monthly mortgage payments next year
Tomorrow (10 July) Jeremy Hunt will outline how he will unlock capital for high-growth businesses and boost outcomes for pension savers, guided by ‘three golden rules’.
Chancellor to use first Mansion House speech to set out how Britain’s financial services sector will support the Prime Minister’s priority to grow the economy.
Measures will mean that more investment is available for high-growth businesses, which are key to creating good jobs, opening up opportunity and contributing millions in tax receipts.
Chancellor Jeremy Hunt will deliver his first Mansion House address tomorrow (10 July) setting out how Britain’s financial services will support the drive for long-term sustainable growth across the country.
In front of an audience of CEOs and leaders from the sector in the City of London, the Chancellor will set out his “Mansion House Reforms” to drive the Prime Minister’s priority to grow the economy by making the UK the most innovative and competitive financial centre in the world.
The financial and related professional services industry employs over 2.5 million people – something Hunt will describe as starting from a “position of strength” – and generates more than £100 billion in tax revenue, paying for half the cost of running the NHS.
He will also hail the importance of the traditionally “nimble” and “agile” sector for Government’s vision of Britain as a science superpower and the world’s next Silicon Valley.
The Chancellor is expected to say: ““I want to lay out plans to enable our financial services sector to increase returns for pensioners, improve outcomes for investors and unlock capital for our growth businesses.”
The reforms will not only help create jobs and increase tax revenues – which ultimately helps to fund vital public services – but will also lead to better returns for pension savers in the long term.
The Mansion House Reforms will be guided by the Chancellor’s three golden rules. He is expected to say: ““Firstly everything we do we will seek to secure the best possible outcomes for pension savers, with any changes to investment structures putting their needs first and foremost.
“Secondly we will always prioritise a strong and diversified gilt market. It will be an evolutionary not revolutionary change to our pensions market. Those who invest in our gilts are helping to fund vital public services and any changes must recognise the vital role they play.
“The third golden rule is that the decisions we take must always strengthen and never compromise the UK’s competitive position as a leading financial centre able to fund, through the wealth it creates, our precious public services.”
Hunt is expected to announce a wide-ranging package of measures that build upon the Edinburgh Reforms announced in December last year and deliver upon the vision that the Prime Minister himself set out at Mansion House in 2021 – with a smarter rulebook tailored for Britain’s needs.
On the economic headwinds facing the UK economy, the Chancellor will say that there can be “no sustainable growth without first eliminating the inflation that deters investment and erodes consumer confidence” and promise that the government will continue to honour its “responsibilities to those struggling the most” in the face of inflation.
David Livingstone, Citi’s Chief Executive Officer (Europe, Middle East and Africa) said:“Citi strongly supports a UK strategy focussing on growth and improving competitiveness.
“A government plan to reform the pension system to emphasise net returns would be key to the collective prosperity of all the country’s pensioners, while also creating a higher growth, more productive, and innovative economy.
“Based on Citi’s experience working with investors and pension funds around the world, consolidating funds often increases efficiency and improves access to global, diversified investment opportunities, which would be immensely beneficial to the UK, home to the second-largest pool of long-term capital in the world.”
Hannah Gurga, Director General, ABI said:“We share the Government’s ambition to make pension money work as hard as possible to deliver better returns for savers and the UK economy.
“A long-term strategy with savers at its heart and working with the sector are key to delivering on this ambition. We and our members look forward to working closely with Government as it fleshes out its plans over the summer.”
Dr Dan Mahony, Government Life Sciences Investment Envoy and Chair of the UK BioIndustry Association (BIA), said:“The unlocking of pension fund assets for investment into the UK life sciences sector will enable everyone saving for their retirement to benefit financially from Britain’s world-leading strength in drug discovery and development, whilst supercharging business growth and accelerating medical progress.
“We have great science and great people, now they will be supported by greater capital from the UK, adding to what the sector is already attracting from overseas investors.
“More domestic investors championing our growing companies will help them to put down deeper roots here, producing more jobs and benefits for the UK economy.”
Chris Cummings, Chief Executive, the Investment Association said:“The Chancellor’s comments recognise that investment must be at the heart our economy – providing for the financial futures of UK households through pensions that deliver good returns, even in the most challenging economic times, and powering growth by investing in British businesses.
“The recognition of the central role of long term investment is the foundation of successful policy.
“With the right regulatory framework, pension schemes will be able to invest productively and sustainably, unlocking further investment for innovative growth companies, and improving returns for savers by broadening investment options. In tandem with reforms to the listings regime, this will help the UK to become a more globally attractive place for companies to list, invest and do business.
“Achieving this new economic dynamism will require the government to bring together regulators, policymakers, and businesses, to create a forward-looking and internationally competitive investment framework, based on a stable, long term policy approach.
“This will also improve the gilt market, ensuring UK government debt remains attractive to domestic and international investors.
“Delivering these outcomes will require us to strike the right balance between risk and reward and between protection and innovation. Investment managers stand ready to play our part.”
Decriminalisation of all drugs for personal supply is one of a number of polices which the Scottish Government is calling on the UK Government to implement in a new paper on drug law reform.
The move would allow people found in possession of drugs to be treated and supported rather than criminalised and excluded. Decriminalisation would also mean that without a criminal record, people in recovery would have a better chance of employment.
The document has been published by the Scottish Government outlining measures which could be implemented through further devolution, independence, or changes enacted immediately by the UK Government to support the work being done within existing powers to reduce drug deaths.
Among the proposals are:
Decriminalisation of all drugs for personal supply progressed as part of a wider review of drug laws
Immediate legislative changes to allow us to fully and properly implement harm reduction measures such as supervised drug consumption facilities (rather than the current proposal being explored which is constrained by having to work within existing legislation), drug checking and increased access to the life saving drug naloxone.
a roadmap for further exploration of drug law reform, focused on evidence and the reduction of harm, including an update of the drug classification system to be based on harms caused
The proposals follow recommendations made by the Drug Deaths Taskforce in September 2021.
Minister for Drugs Policy Elena Whitham said: “These are ambitious and radical proposals, grounded in evidence, that will help save lives.
“We want to create a society where problematic drug use is treated as a health, not a criminal matter, reducing stigma and discrimination and enabling the person to recover and contribute positively to society. While we know these proposals will spark debate, they are in line with our public health approach and would further our national mission to improve and save lives.
“We are working hard within the powers we have to reduce drug deaths, and while there is more we need to do, our approach is simply at odds with the Westminster legislation we must operate within.
“These policies could be implemented by the Scottish Government through the devolution of further, specific powers to Holyrood including the Misuse of Drugs Act 1971 – or through independence. An immediate way for these policies to be enacted would be for the UK Government to use its existing powers to change its drug laws.
“Scotland needs a caring, compassionate and human rights informed drugs policy, with public health and the reduction of harm as its underlying principles, and we are ready to work with the UK Government to put into practice this progressive policy.”
A spokesperson for the Scottish Conservatives said: “Trying to solve Scotland’s drug death crisis by decriminalising dangerous class-A drugs is reckless.
“To tackle the highest drug death rate in Europe, Humza Yousaf needs to back our Right to Recovery Bill.”
The Scottish Liberal Democrats have been calling for the decriminalisation of drug misuse for years. From rehab spaces to support for families, there are pressing areas where action is needed. This is an urgent public health crisis and ministers need to act like it.
