Summer Statement  

Industry welcomes Sunak's Summer Statement

Industry welcomes Sunak's Summer Statement

The advice and investment management industry has largely welcomed the chancellor's Summer Statement with one advice giant suggesting some measures could even narrow an impending advice gap. 

Rishi Sunak delivered what was being dubbed a "mini-budget" today (July 8) with a promise "no one would be left without hope" in the wake of the coronavirus crisis.

In the hours after the statement some have raised concerns the proposals would not be enough to keep the UK economy afloat in the aftermath of the pandemic, with a further spending spree predicted in the Autumn Budget.

But many of the chancellor's measures of have been well received by trade and professional bodies, with Keith Richards at the Personal Finance Society predicting his stamp duty holiday would "get the nation moving again". 

Apprenticeship and traineeship bonuses 

Mr Sunak revealed a bonus incentive package which would pay employers £1,000 for each new trainee they take on, £2,000 per young apprentice and £1,500 for apprentices aged 25 and over. 

PFS chief executive Mr Richards welcomed the additional funding for apprenticeships, which he said could see apprentices thrive.

He added: "We have seen increasing interest in our own apprenticeship programme, PFS Aspire, as more firms are keen to bring new blood into the sector for multiple reasons, including succession planning as principals set in place plans to exit in the future."

During PMQs earlier today Boris Johnson said he wanted young people to get the "self-confidence and experience of work" to get the jobs they need. 

Scott Stevens, director of recruitment and acquisitions at Quilter Financial Planning, urged advice firms to use the chancellor's schemes to set up work placements for 16-24 year olds and apprenticeships for all ages. 

Mr Stevens said: "As an industry we have talked until we are blue in the face about the advice gap and how we need more advisers coming into the industry, particularly a younger and more diverse cohort.

"But it’s not just advisers we need, it’s paraplanners, support staff and many others.

"This government package is an ideal opportunity for the advice industry to put their hands up and say we need more staff and we are happy to get involved."

Last year Quilter warned a quarter of advisers could be set to leave the market in the near future amid an ageing industry population and increasing regulatory burdens.

Mr Stevens added: "More than just good practice, it will be good for business as this will showcase our profession as one for younger people to consider.

"Plus, we cannot deny that many entrants to the job market will not have heard of financial advice and by opening up our doors to more workers we may in turn find that we inform more people about the value that financial advice can add."

The Personal Investment Management & Financial Advice Association welcomed today's announcement as a "substantial package to help to stimulate the economy and create jobs".