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The head of the Lloyds Banking Group compared the enforcement of pension funds to invest in British assets in “capital controls”, and argues that combating the real estate crisis and improving the financial resilience of the British would be a better way to expand the economy.
Charlie Nunn said that the mandation would conflict its legal obligations to find the best returns for pensioners.
“The prescription of pension funds is a form of capital control. I have spent 10 years of my working life in China and many jurisdiction in which there are capital controls,” he told the Financial Times. “This is a different model and this is a difficult inclination for an economy that believes that it is an open economy.”
The comments from Lloyds, the British largest retail bank and owner of the pension provider Scottish Widows, are days ahead of Chancellor Rachel Reeves’ Mansion House Speech, which includes a strategy for the financial service industry.
The government already has said it would be A “backstop” power to force pension funds to invest in British assets such as infrastructure, living space and rapidly growing companies as well as voluntary agreements with the sector. There is also a debate on whether a defined level of investment in British stocks would help to fix the decline in support from domestic institutions of British companies.
Lloyds has already assigned 35 billion GBP for the investment in British assets, according to Nunn.
An expected announcement by Reeves from A reduction in the annual tax -free cash allowance Was only a small part of the struggle for the fixation of the Great Britain financial health, added.
“Everyone is connected in the Cash -ISA debate … which is relevant for a few rich people if we are honest about it.
The reduction of the cash -insa allowance would be designed in such a way that more savers in shares encourage them in the hope of reviving the wealth of the London stock exchange. However, Nunn said that a lack of financial advice also prevented people from saving more efficiently, with about 70 percent of the British had less than 5,000 GBP savings.
The withdrawal of the Labor Government this week to social reforms feared that the Chancellor will ultimately have to increase taxes in order to close the 5 billion GBP hole in public finances.
There is also discomfort in the city that the Chancellor could increase the financial funds by increasing bank taxes – contained an option in A leaked memo by deputy prime minister Angela Rayner at the beginning of this year.
Now said that there was “no discussions about it” with the government. However, he emphasized that every increase in the corporate tax rate for banks would “slow down my ability to lend real customers and to support business and growth”.
The head of Lloyds emphasized that Great Britain was exposed to a “apartment crisis in the production of forty years”, especially for affordable houses with 1.5 million fewer houses in social rents than in the 1980s.
Before a social housing forum organized by Lloyds on Monday, Nunn said that the coordination between lenders, developers, municipalities and the government was of essential importance to solve the problem.
The bank, which has awarded the social housing sector more than 20 billion GBP, plans to transform affordable houses in 124 affordable houses.
Lloyds has set itself the goal of supporting 1 million houses in socially affordable rents in the next decade. “I always think that if you are not ambitious for goals, it will never happen,” says Nunn.
Despite high goals – with the government’s commitment to build 1.5 million houses in England in the five years by 2029 – now, the number of houses built last year, which was built last year. Private companies hesitate to lose money for development by building up a downturn, while the municipal councils of cash output more retrofitting for sustainability and the cladding caused security issues than on the construction of houses.
Housing described Housing as a “critical need” for the growth of Great Britain’s growth: “Since this is very important as the basis for Great Britain.”
“We have to do more and we have to do it faster. These are massive problems for people in Great Britain and they are not solved quickly enough,” he said.
According to Nunn, Lloyds pursued a “glass half” approach for the economy, although the bank only expects growth of around 1 to 1.5 percent per year in the next three years.
“The economy is healthier … The problem is that we do not have the trust and vision to invest, and we do not get companies to invest in the next level of growth.”
