The new government’s commitment to prioritising sustainable economic growth and recognising UK savings and investment as a key drivers of this growth is very welcome.

This approach acknowledges the investment system’s pivotal role in fostering growth, ensuring higher-quality retirements, and improving intergenerational fairness. Where previous governments have tended to view the investment system either as either a source of taxation or systemic risk, the current government has the opportunity to position it as a crucial intermediary — directing funds from UK savers and investors to both UK firms in need of growth capital and the country’s decarbonisation agenda.

Such a perspective has the potential to create a virtuous cycle, with increased investment driving a more productive, sustainable economy and, in turn, encouraging further investment.

To unlock this potential, however, the investment system requires reform.

Read New Capital Consensus’ full launch report: Reviving UK Investment Flows