Top pension funds urge UK to change fiscal rule ahead of budget
Pension funds urge rule change to boost investment
New Labour government announces first budget on Oct 30
Finance minister meets major UK banks on Wednesday
Adds finance ministry in paragraph 9, banking source in paragraph 12
By Iain Withers and Sinead Cruise
LONDON, Oct 9 (Reuters) -Major pension funds have called on the British government to overhaul one of its fiscal rules in its budget later this month, adding to growing calls for the country to encourage more investment in infrastructure and green technology.
The call comes as finance minister Rachel Reeves prepares to present the Labour Party's first budget on Oct. 30 since it won power in a July election with promises to get Britain's economy growing more quickly.
The UK government will host a high-profile meeting next Monday with international investors whose cash they will need to help fund projects.
Australian pension fund IFM Investors, which manages around $146 billion of assets globally, made its recommendation in a report published on Wednesday, which it said was backed by other funds including Britain's Universities Superannuation Scheme.
The report urges Britain to adapt a fiscal rule for calculating public sector debt to allow for investment by public infrastructure bodies to be counted on the asset side of the balance sheet.
Currently borrowing used to finance these bodies is counted towards debt, but the value of their illiquid financial assets, equity stakes and infrastructure holdings is not treated as an asset.
"In our view, this does not make economic sense and may be a barrier (to investments)," the report said.
Reeves has previously said it is important to count the benefits of public investment as well as its costs in the context of the fiscal rules, without giving further details.
ECONOMIC STABILITY
A spokesperson for Britain's finance ministry said the budget would be built on economic stability, including robust fiscal rules. The ministry also saidthe upcoming investment summit would "bring together investors from around the world to show what the UK has to offer".
The Guardian newspaper reported on Tuesday that Reeves was considering changes to debt rules that would allow the government to borrow tens of billions of pounds more forcapital investment.
Reeves met with bosses of some of Britain's biggest banks including HSBC HSBA.L, Barclays BARC.L, NatWest NWG.L and Lloyds LLOY.L earlier on Wednesday to discuss financing infrastructure, the transition to net zero and UK businesses critical to the so-called "national growth mission".
One banking source said Reeves gave no steer on possible changes to taxation of the sector at Wednesday's meeting. There are concerns in the sector she mighthike a tax on banks' profits to help plug a hole in public finances, sources previously told Reuters.
The topics discussed on Wednesday included regulation and industry collaboration, with further details expected in her Mansion House speech on Nov. 14.
Reporting by Iain Withers and Sinead Cruise
Additional reporting by David Milliken
Editing by Gareth Jones
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
