Forcing pensions to British funds as “capital control”, says Lloys chief

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The head of the Lloyds banking group compared to forcing pension funds to invest in funds in the UK with “capital controls”, arguing that tackling the crisis in housing and improving British financial elasticity would be a better way to develop the economy.

Charlie Nan said the mandate would put the funds “in conflict” with their fiduciary legal obligations to find the best yields for pensioners.

“Authorities of pension funds is a form of capital control. I spent 10 years since my working life in China and many jurisdictions where there are capital controls,” he told the Financial Times. “This is a different model and it is a difficult slope for an economy that believes that economy is open.”

Comments from Lloyds chief executive, the largest retailer in the UK and retired owner Scottish widows, are coming days before Chancellor Rachel Reeves, which will include a financial services strategy.

The government already has said he would create The “background” power to force pension funds to invest in British funds, such as infrastructure, housing and fast -growing businesses, along with voluntary agreements with the sector. There is also a debate on whether to seek a certain level of investment in capital in the UK will help resolve the decline in support from domestic institutions of British listed companies.

Lloyds already have £ 35 billion for investment in British funds, Nun said.

Expected post of Reeves from Reducing the annual tax -free tax allowance It was only a small part of the battle in fixing the UK’s financial health, NUN added.

“Everyone is tied to the Gotovina debate.

The reduction of the ISA compensation for Gotovina would be designed to encourage more capital savers, amid hopes of helping to revive the happiness of the London Stock Exchange. But Nun said that the lack of financial councils also prevents people from saving more efficiently, with about 70 % of Britons saving less than £ 5,000.

The withdrawal of the labor government this week in prosperity reforms has sparked fears that the chancellor will eventually have to raise taxes to join the £ 5 billion hole in public finances.

There is also anxiety in the city that the chancellor could strengthen the cashier for finance by increasing the bank’s tax – an option included in A. A memorandum leaked by Deputy Prime Minister Angela Rainer earlier this year.

Nan said there was “no discussions about it” with the government. But he noted that any increase in the corporation’s tax rate for banks would “slow down my ability to borrow real clients and support business and growth”.

Lloyds chief said the UK faces “a forty -year -old residential crisis”, especially for acceptable homes with 1.5 million fewer homes available to social rents than in the 1980s.

Before the Lloys forum on Monday, Nan said that coordination between lender, developers, local councils and the government are essential to solving the problem.

The bank, which borrowed more than £ 20 billion in the social housing sector, plans to turn one of its older data centers into Poodsis, West Yorkshire in 124 acceptable homes.

Lloyds have set a goal of supporting the homes of 1 million in socially available rents over the next decade. “I always believe that if you are not ambitious about the goals, it will never happen,” Nann said.

Despite the sublime goals – with the government also promising to build 1.5 million homes in England in five years to 2029 – the number of homes built last year went back, Nan admitted. Private firms are not ready to lose money for development by falling in a fall, while local money money is spent more renovation of sustainability, as well as security problems caused by betting than building homes.

Nan called the housing “Critical Need” for Britain’s Growth Ambitions: “Because this will cause community growth, productivity, it is very important as a basis for the UK.”

“We need to do more and we have to do it faster. These are huge problems for people in the UK and they are not resolved fast enough,” he said.

Nan said Lloys took a “glass half full” approach to the economy, although the bank expects about 1 to 1.5 percent annually over the next three years.

“The economy is healthier.