Investment Association comments on Autumn Statement: Investment and productivity
Chris Cummings, Chief Executive Officer of the Investment Association, comments on today's Autumn Statement:
On investment in British infrastructure, housing and local government
"The Investment Association supports the increased focus on infrastructure investment in today's Autumn Statement.
"To turn this policy into practical solutions requires a partnership between policymakers and the industry. That is why we are today giving our formal backing to the development of a UK municipal bond market, which will help local authorities secure much-needed financing to invest in new infrastructure projects and meet their refinancing needs, by launching a position paper outlining our support and the benefits of municipal bonds for investors, borrowers and the wider economy.
"Providing long-term capital is one of the asset management industry's most valuable roles in society, and we already fund 60% of all new capital market fundraisings. As the Government looks to improve the UK's infrastructure, build more housing and create jobs and economic growth through investment the industry has clearly demonstrated its willingness to make even more investments to help build the British economy.
"The Investment Association is playing a core role in these efforts, working with our membership to advance investment in areas such as infrastructure and housing associations by creating markets that are up to the required standards to be attractive for investors to participate in."
On measures to boost economic productivity
"Today's announcement of a range of measures on improving productivity including increased research & development investment is to be welcomed, and as long-term investors we also back the Government's review into Patient Capital, because improving productivity can only occur when long-term investment increases. Boosting the nation's economic productivity is crucial if we are going to make sure that we can raise people's standards of living and allow them to save enough money for later life, and so we support the Government's renewed focus on this area.
"The IA is currently working to deliver our Productivity Action Plan to play our part in boosting productivity for UK society, and last week we published a major new paper calling on UK listed companies to move away from quarterly reporting to focus more on longer-term strategic reporting."
On the fact there were no major pensions/savings announcements
"The Government's decision to retain the rise in the ISA limit to £20,000, and to refrain from further changes to the UK's pensions tax regime today is a welcome one. A stable tax environment is vital to encourage people to save enough money to provide for their later lives, together with strong consumer support mechanisms, proportionate regulation, well-designed products and transparent charges. We look forward to working further with the Government to ensure the pensions system delivers successfully for millions of UK savers and households over the long term."
