A group of fund managers have written to George Osborne lending support to his plans to increase the UK’s productivity.
The 10 managers set out some ways in which they will support companies investing for long-term growth and challenge those compromising long-term competitiveness and productivity.
They also said they would help extend the UK’s equity base by developing proposals to incentivise long-term investment as well as building the long-term debt market.
The letter said: “Since 2010, the UK has outperformed in job creation and GDP growth – a significant economic success for the government.
“Productivity growth, however, remains 16 per cent below its pre-2008 trend rate. Long-term capital investment in the UK is too low, which contributes to low productivity and low workforce pay.”
Among the signatories of the letter are Neil Woodford, of Woodford Investment Management, James MacPherson of BlackRock, Peter Harrison of Schroders and Helena Morrissey, chief executive of Newton Investment Management and chairman of the Investment Association.
They have said they will write to the chancellor again towards the end of the year to report on their progress.
Adviser view
Greg Heath, managing director of Lancashire-based Derbyshire Booth, said: “I would probably alter the taxation rules to reward long-term investing because right now, with capital gains tax, it doesn’t matter how long you hold the investment, you pay the same tax.”
