UK finance chiefs are banging the drum for one major reform to boost economic growth

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U.K. finance chiefs are banging the drum for pension reforms to boost anaemic investment and growth in the country.

The annual Labour conference — the centre-left party's first in power for 15 years — was awash with delegates from the City of London urging the government to move decisively with plans to make retirement schemes more competitive.

The annual Labour conference — the centre-left party's first in power for 15 years — was awash with delegates from the City of London urging the government to move decisively with plans to make retirement schemes more competitive. "If we do not have domestic capital investing in domestic businesses, we will not see the growth that this government is so rightly focused on," he added.

Economic secretary to the Treasury, Tulip Siddiq, said Monday that raising the risk appetite of pension funds to invest more heavily in equities was critical to Labour's wider"If we don't unlock the capital in pension funds, we're not getting anywhere — and that's about putting investment into our country," she said.

The U.K.'s local government pension scheme, which manages £360 billion worth of assets for 6.6 million public sector workers, is currently fragmented into 86 individual funds in England and Wales. If it were combined into a single fund, it would rank as the seventh largest in the world.International Investment Summit next month will be a key test of the government's ambitions to catalyse further investment, with around 300 industry executives expected to attend.

 

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