Andy Haldane, former chief economist at the Bank of England and now president of the British Chambers of Commerce (BCC), has called for bold government action to boost investment in UK companies and stem the exodus of British-listed firms abroad. Speaking at the BCC's global annual conference in London, Haldane urged the government to deploy the vast stockpile of savings, pension, and investment fund cash more effectively to support British businesses.
Only 5% of £9 Trillion Supports British Business
Haldane highlighted that UK households hold financial assets of around £9 trillion, more than enough to finance business Britain, but only a tiny sliver of that is recycled into supporting British business. He stated: 'UK households hold financial assets of around £9 trillion, more than enough to finance business Britain, but right now only a tiny sliver of that £9 trillion is being recycled into supporting British business. Only around 5% or less is making its way into nourishing British businesses.'
Lack of Home Bias in UK Pension Funds
Haldane noted that other countries have a 'home bias' towards investing in their domestic companies, but the UK's pension fund system lacks this bias. He said: 'The UK’s pension fund system, big and mature, is the only pension system in the world on the planet that does not have such a home bias towards British businesses, it’s the ultimate irony that Canadian, Dutch, Australian pension funds invest more in British companies than do British pension funds.' He called for changes in pension fund investing and the tax system to address this imbalance.
Risk of Losing More Companies Overseas
Haldane warned that the UK risks losing more valuable companies overseas unless it becomes more attractive and bolsters investment. He noted that since 2024, the UK has lost over 100 listed companies with a market cap exceeding £100 million. Major firms like Paddy Power owner Flutter Entertainment have switched their primary listings overseas, with Flutter now planning to quit the London market altogether. Haldane said: 'We simply cannot afford to allow the continuation of overseas stripping of our greatest growth asset… on this scale.'
Call for Boldness and Speed
Haldane, who is reportedly among economic heavyweights advising Andy Burnham – the frontrunner to replace Sir Keir Starmer as Prime Minister – emphasized the need for bold thinking. He said: 'If the Government wishes to act at speed and scale, and it surely needs to do both of those things… (it) will require this level of boldness of thinking.'
