UK Chancellor Jeremy Hunt is set to unveil three "golden rules" to support long-term sustainable growth across the UK economy in today's (10 July) ‘Mansion House reforms'.
Hunt will use the annual speech to lay out plans to "increase returns for pensioners, improve outcomes for investors and unlock capital for our growth businesses", and reveal a range of packages building on last year's Edinburgh Reforms.
The first of Hunt's ‘golden rules' will centre around pensions, with the chancellor seeking to "secure the best possible outcomes for pension savers", while the second will prioritise a "strong and diversified gilt market".
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"It will be an evolutionary not revolutionary change to our pensions market," he is set to say. "Those who invest in our gilts are helping to fund vital public services and any changes must recognise the vital role they play."
The chancellor's final rule asserts any decisions taken must "always strengthen and never compromise the UK's competitive position as a leading financial centre able to fund, through the wealth it creates, our precious public services".
Chief executive of the Investment Association Chris Cummings said the comments recognise "investment must be at the heart of the economy" and described this as the "foundation of successful policy".
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"Achieving this new economic dynamism will require the government to bring together regulators, policymakers, and businesses, to create a forward-looking and internationally competitive investment framework, based on a stable, long term policy approach," he said.
"Delivering these outcomes will require us to strike the right balance between risk and reward and between protection and innovation. Investment managers stand ready to play our part."
Inflation
The chancellor is also set to address persistent inflation in the UK, which remained stuck at 8.7% in May, stating there can be "no sustainable growth without first eliminating the inflation that deters investment and erodes consumer confidence".
He will add that the government must honour its "responsibilities to those struggling the most" as a result.
