Each child could be given £1,000 to invest in a plan to revive the ‘stagnant’ economy
Each child could be given a £1,000 pot at birth, which would go towards long-term investment in Britain’s growth as part of proposals to revive a ‘stagnant’ economy.
The idea of a “New Generation Trust” is being floated as part of a package of reforms that could boost the economy by £225 billion, according to a report by the City of London Corporation.
It brings back memories of the children’s trust fund system, started two decades ago by Gordon Brown and later abandoned by George Osborne.
The report suggests: “Investments would not be accessible until adulthood, at which point they would be automatically deposited into an Individual Savings Account (ISA) or DC.” [defined contribution] Pension.
“By doing so, the government would provide UK companies with a long-term source of capital. It could also help build an investment culture in the UK.”
The idea of a “New Generation Trust” is being floated as part of a package of reforms that could boost the economy by £225 billion, according to a report by the City of London Corporation
How this is to be paid for is not clear from the report.
This is one of several ideas for promoting growth. This includes setting up a Council for Financial and Professional Services, co-chaired by the Chancellor, and promoting the digitization of companies.
Chris Hayward, the company’s policy chairman, said, “Every element is about driving growth and creating jobs.”
“A trust could be an investment in the future of our country.” The report is aimed at politicians preparing for the general elections.
Hayward added, “Whoever is in power, we think the only common agenda item will be: What are you doing to stimulate economic growth when inflation falls and interest rates fall?” “This country’s growth has been stagnant for many years.”