Hi Simon,
Following recent coverage of Britain’s retirement savings shortfall and reporting on the continued lack of UK pension fund investment into high-growth British tech companies, I’m sharing with you reactive comment from Conor McManus, Director, Private Client Tax at Menzies LLP, on the disconnect between government ambitions for domestic investment and the reality facing savers.
Conor argues that the UK cannot build a stronger domestic investment culture while confidence in pensions and long-term saving continues to weaken.
Conor McManus, Director, Private Client Tax, Menzies said:
"Britain can't build a homegrown investment culture if people don't trust or use the savings vehicle that's supposed to fund it. Consumers are already squeezed, with frozen income tax thresholds pulling more people into higher tax bands, leaving less financial room to save. The Pensions Commission reports that fifteen million people are not saving enough for retirement, and IHT changes arriving in April 2027 could make the savings crisis worse, not better. A potential double tax charge of 67% or more, alongside incoming amendments to rules on gifting and estate values, create additional complexity, and further limit confidence in a system that continues to shift year on year."
We can't expect pension funds to back British businesses while providing multiple reasons why individuals should put their money somewhere safer. Without fundamental changes, the investment culture this country needs to grow will continue to be written in dollars, not pounds.”
Please do let me know if you would like to receive further comments from Conor.
Many thanks,
Emma
Emma Cole, Senior Campaign Executive