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FT editor Roula Khalaf picks her favorite stories in this week’s newsletter.
The author is the CEO of Lloyds Banking Group
The general election is a good time to take stock and ask how businesses can help the UK economy unlock its full potential. As one of the UK’s largest retail and commercial banks, Lloyds is working closely with a range of partners to generate more investment in everything from social housing to going green – and what’s clear to me is the key role business can play. in collaboration with the government. If we are serious about delivering long-term prosperity, three crucial issues should be at the top of the next government’s business agenda.
First, economic growth. We can only meet the challenge of growth in the UK if government and the business team come together to unlock investment, boost productivity and tackle skills shortages. Modernizing our national infrastructure represents a generational opportunity to show what we can achieve together.
There is huge demand for new and greener infrastructure in the UK, requiring an estimated £40-50 billion of private capital each year for the next two decades. The money is available if we can create an effective planning regime, have clarity on the right projects to incentivize investment in skills, and provide robust regulatory frameworks across key sectors of the economy that reward innovation and help drive growth.
In financial services, regulation should allow banks to play a full role in lending and investing to get the economy moving, while ensuring financial stability and high standards of consumer protection. It will also help that the UK remains an open and attractive destination for foreign investment.
The second key issue is housing. We just don’t build enough houses. In England alone, there are almost 1.3 million households on social housing waiting lists. In some parts of the country they will wait 20 years. As families struggle to find affordable, safe homes, it takes a toll on their mental and physical health, well-being and educational outcomes.
The next government should set out a 10-year national strategy and commit to the reforms needed to deliver it. Decisive steps in planning – and a more realistic approach to risk that safely unlocks more funding for both local government and developers – are potentially huge steps. The government could also help deliver more social housing by investing in development alongside the private sector and bringing buildings that are currently empty back into use. We cannot afford to do nothing.
Third, we need to help those who are working plan for the future and save for retirement. Automatic pension enrollment was a significant step towards better security and peace of mind in retirement. However, much more needs to be done to achieve greater financial resilience for individuals and families.
There is much we can learn from countries that have focused on financial education, along with promoting better use of savings and investment products that will be needed in later life. The next government should appoint a cross-party Lifetime Savings Commission to agree how we address the full breadth of people’s financial needs in the coming decades. Pensions and long-term savings reform will not only boost financial security for consumers, but will create a valuable new flow of capital for the UK economy.
We have huge potential as a country. The financial services sector can help people build and achieve their ambitions. However, for this we need the right foundations. The next government faces a long list of challenges, but progress on sustainable growth, housing and financial resilience also presents huge opportunities for growth. Across the UK and across all sectors and industries, businesses like ours are eager to work with any government as energetic partners to help Britain prosper.