A new report has illustrated how six policy changes could add 0.7% to UK growth by 2035.
The research was commissioned by Legal & General (L&G) and produced by Oxford Economics. Its findings may be of interest to people investment planning in Oswestry, Cheshire, and across the country.
The report, titled A Blueprint for Growth, emphasises a number of policy levers that could boost government revenue, raise household incomes and unlock pensions and institutional capital for investment. It calculated that the reforms could result in an extra £8.8 billion of government revenue, whilst increasing people’s disposable incomes by approximately £330 by 2035. The pension and insurance sector plays a vital role in steering investment in the economy. In 2024, the value of UK pension assets was calculated at around £3.2 trillion.
The study also stressed the growing role of institutional investors, such as L&G, in aligning with the government’s Plan for Change blueprint for its social and economic objectives. This means investment in sustainable growth, clean energy, new housing and digital infrastructure.
So what are the six policy changes? The Oxford Economics model assessed the likely impact of each on the UK economy. These are the Mansion House Accord, the Local Government Pension Scheme (LGPS), new Surplus Extraction powers, housing planning reforms, greater pension contributions, and expanding on the investment accelerator, Solvency UK, to speed up investments from the insurance industry.
Moving forward, much will depend on how long-term capital can be directed into productive and growth-boosting market sectors.
