Each child could receive £1,000 to invest in a plan to revive the ‘stagnant’ economy
Each child could receive £1,000 to invest in a plan to revive the ‘stagnant’ economy
Each child could receive a pot of £1,000 at birth, which could be used for long-term investment in Britain’s growth, under proposals to revive a ‘stagnant’ economy.
The idea of a ‘New Generation Trust’ is being put forward as part of a package of reforms that could add £225bn to the economy, according to a report from the City of London Corporation.
It revives memories of the children’s trust fund launched by Gordon Brown 20 years ago and later abolished by George Osborne.
The report suggests: ‘The investments would be inaccessible until maturity, if they were automatically invested in an individual savings account (ISA) or DC pension (definition).
By doing so, the government would provide a source of long-term capital for British companies. It could also help build a culture of investment in Britain.”
The idea of a ‘New Generation Trust’ is being floated as part of a package of reforms that could add £225bn to the economy, according to a report from the City of London Corporation
How this would be paid for is not mentioned in the report.
It is one of many ideas to stimulate growth. They include setting up a Financial and Professional Services Council, co-chaired by the Chancellor, and encouraging businesses to go digital.
Chris Hayward, policy chairman at the company, said: ‘Each element is about driving growth and creating jobs.
A trust could be an investment in the future of our country.’ The report is aimed at politicians preparing for the general election.
Hayward added: “Whoever is in power, we think the only common agenda item will be, once you cut inflation, once interest rates come down, what do you do to stimulate economic growth? The growth of this country has been stagnant for years.’