HALDANE CALLS FOR HOME BIAS IN PENSION TAX RELIEF

Andy Haldane, president of the British Chambers of Commerce, has called for pension tax relief worth more than £50bn annually to be made conditional on investment in British businesses. Speaking at the BCC's annual conference in London, Haldane said a "home bias" directing retirement savings towards UK companies would close a funding gap affecting small and medium-sized enterprises. He argued that radical measures were needed to provide startup companies with the capital required for growth. Haldane is a former chief economist at the Bank of England.

Haldane stated that an international financial system flush with capital seeking investment opportunities nonetheless failed to meet the needs of British companies. He said unfettered free markets had not resolved this mismatch over the past 30 years, and that government intervention was necessary. According to Haldane, measures adopted so far, including the launch of the National Wealth Fund, had delivered only modest results. He identified the British pension system as uniquely positioned for reform, claiming it was the only major pension system globally without a home bias requirement.

The proposal would require retirement schemes to channel funds into UK companies in exchange for pension tax relief, according to Haldane's account. He characterised this approach as avoiding deployment of additional taxpayer funds whilst shifting investment incentives towards British businesses. Haldane is reported to have been mentioned as a potential adviser on economic policy. The plan is expected to form part of a new economic proposal under development.