CBI responds to pension reforms ahead of the Mansion House speech

Louise Hellem, CBI Chief Economist, said:

“Chancellor Rachel Reeves is right to focus on how to boost investment, increase saver returns, and modernise our pensions system. The UK has the second largest pool of pensions assets in the world so finding ways to reorient them towards long-term investment in businesses and infrastructure could drive economic prosperity. This has the potential to be good for investment and good for savers. Employers themselves will be supportive of these measures if they deliver overall economic growth and don’t add significant costs in implementation.

“While the Chancellor is right to concentrate on mobilising investment, putting pension reform to work for the government’s growth mission, unlocking investment also needs competitive and profitable businesses. With the Budget piling additional costs on firms and squeezing their headroom to invest, the government needs to work hard to regain the confidence in the UK as a place businesses and communities can succeed. Pension schemes will want to operate within a UK economy that is prospering.”