THE Chancellor last night attempted to win back the City with plans to create pension megafunds to boost investment in Britain and rip up financial red tape.Andrew Bailey, Governor of the Bank of England, last night agreed that the UK pension system had been 'too fragmented' to encourage 'investment in the real economy'Ms Reeves wants to create her “megafunds” by pooling £1.3trillion of pension savings held by 86 separate local government schemes.
Tom Selby, public policy director at AJ Bell, said the megafunds must not forget their purpose to deliver good returns for pensioners. The Chancellor, who has said she wants to bring more stability and security to the financial system than the Conservatives, last night conceded it was time to take off the kid gloves.
He also pointed the finger at former CEO Jonathan Akeroyd’s decision to hike handbag prices, when Burberry did not have the same clout as leather goods giants LVMH and Hermes.