Every child could get £1,000 pot to invest in plan to revive ‘stagnant’ economy
Every child could receive a pot of £1,000 at birth to be channelled into long-term investments in UK growth under proposals to revive a ‘stagnant’ economy.
The idea of a ‘New Generation Trust’ is raised as part of a package of reforms that could add £225billion to the economy, according to a report by the City of London Corporation.
It revives memories of the child trust fund scheme launched by Gordon Brown two decades ago, later scrapped by George Osborne.
The report suggests: ‘The investments would be inaccessible until adulthood, when they would be automatically invested in an individual savings account (ISA) or DC [defined contribution] pension.
‘In so doing, the Government would be providing a source of long-term capital to UK businesses. It could also help to build an investment culture in the UK.’
The idea of a ‘New Generation Trust’ is raised as part of a package of reforms that could add £225bn to the economy, according to a report by the City of London Corporation
The report does not identify how this would be paid for.
It is among a number of ideas to boost growth. They include setting up a financial and professional services council, co-chaired by the Chancellor, and encouraging business to go digital.
Chris Hayward, policy chairman at the corporation, said: ‘Every element is about driving growth and creating jobs.
A trust could be an investment in our nation’s future.’ The report is targeted at politicians preparing for the general election.
Hayward added: ‘Whoever’s in power, we think the one common agenda item will be: once you get inflation down, once you get interest rates coming down, what do you do to drive economic growth? This country’s growth has been stagnant for many years.’
