Investments

‘Household finances and education is key to govt investment growth drive’


As 2024 closed out the UK Treasury took the unusual step of asking the country’s main financial markets regulator, the Financial Conduct Authority, to reinforce financial inclusion as part of its remit.

The Treasury said the FCA “should have regard to reinforcing financial inclusion . . . to enable individuals to access the financial services and products they need to fully participate in the economy”.

But there is a contradiction here.

While there is growing evidence of the Starmer government’s willingness to think about the investment infrastructure of the economy – the proposed national wealth fund, the push to build AI infrastructure and an initiative to merge local pension funds to create ‘mega’ funds with a broader investment remit – there has not been enough focus on households and promoting true financial inclusion for them.

This missing investment pillar, that of household wealth, if executed, could help fuel the economy and build financial security for households through the long-term.



Source link

Leave a Reply