{"id":246548,"date":"2025-07-08T00:01:25","date_gmt":"2025-07-08T00:01:25","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/246548\/"},"modified":"2025-07-08T00:01:25","modified_gmt":"2025-07-08T00:01:25","slug":"labour-acting-like-communist-china-lloyds-boss-blasts-reeves-over-shake-up-of-pensions","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/246548\/","title":{"rendered":"Labour acting like communist China: Lloyds boss blasts Reeves over shake-up of pensions"},"content":{"rendered":"

By JOHN-PAUL FORD ROJAS<\/a> <\/a> <\/p>\n

Updated: 19:44 EDT, 7 July 2025 <\/p>\n

Lloyds Bank\u2019s boss has likened Labour\u2019s plans for pensions to \u2018capital control\u2019 policies in communist China.<\/p>\n

Charlie Nunn compared the idea of forcing pension funds to invest in UK assets with the approach of repressive regimes such as Beijing.<\/p>\n

The caustic comments from the chief executive of Britain\u2019s biggest mortgage lender pile further pressure on Chancellor Rachel Reeves ahead of her Mansion House speech to the City next week.<\/p>\n

Ministers are seeking voluntary agreements with retirement funds to invest in UK assets such as infrastructure and housing, but will create \u2018backstop\u2019 powers to mandate them to do so.<\/p>\n

But Nunn told the Financial Times that mandation would put funds in conflict with their fiduciary duty to seek the best returns for pensioners.<\/p>\n

He said: \u2018Mandating allocations of pension funds is a form of capital control.<\/p>\n

\u2018I have spent ten years of my working life in China and many jurisdictions where there are capital controls. That is a different model and that is a difficult slope for an economy that believes it is an open economy.\u2019<\/p>\n

\"Lloyds \"Chancellor <\/p>\n

Warning: Lloyds boss Charlie Nunn (left) has piled further pressure on Chancellor Rachel Reeves (right) ahead of her Mansion House speech to the City next week<\/p>\n

The Government\u2019s plans to give itself powers to force funds to invest in the UK have already been described as a \u2018step too far\u2019 with a number of experts lining up to criticise them. But Nunn is the most senior to do so.<\/p>\n

Lloyds has already shown a reluctance to sign up to Labour\u2019s plans on pensions. Its Scottish Widows arm declined to join an agreement by 17 other retirement providers to invest at least 5 per cent of their default funds in private market assets.<\/p>\n

And it emerged last month that Scottish Widows was preparing to cut its exposure to UK equities.\u00a0<\/p>\n

Nunn yesterday also offered scepticism on another key policy expected to be laid out at the Mansion House speech \u2013 that the cash allowance for tax-free Isa<\/a> savings will be reduced from \u00a320,000. The idea would encourage savers to put more money into Stocks and Shares Isas instead.<\/p>\n

Nunn told the FT: \u2018Everyone gets tied up in the cash Isa<\/a> debate, which is relevant for a few rich people if we are honest about it.<\/p>\n

\u2018But that\u2019s not where the problem is, that\u2019s not the way to turn around the economy.\u2019<\/p>\n

The comments add to the growing sense that after a year of a Labour government, business leaders are losing patience with the party that before the election had wooed the corporate world with a smoked salmon and scrambled egg charm offensive.<\/p>\n

Many are now feeling the impact of a damaging \u00a325billion raid on employer national insurance \u2013 announced in last autumn\u2019s Budget \u2013 which came into force in April.<\/p>\n

The effects of the policy, which is effectively a tax on jobs, are coming through in the shape of fewer jobs, lower pay and reduced investment.<\/p>\n

But as the Government\u2019s precarious finances deteriorate further \u2013 thanks to U-turns over plans to cut welfare spending and new commitments to splash out on defence \u2013 fears are growing that Labour will return with a fresh tax grab this autumn.<\/p>\n

Among those to raise the alarm are Currys chief executive Alex Baldock, who last week warned the Government to \u2018think very carefully before they make the situation any worse\u2019.\u00a0<\/p>\n

And Santander UK boss Mike Regnier said that a tax raid on banks threatens to hobble growth.<\/p>\n

A Treasury spokesman said pension reforms \u2018will unlock billions for the UK economy, supporting businesses to grow and creating well-paid jobs across the country\u2019.<\/p>\n

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\n Labour acting like communist China: Lloyds boss blasts Reeves over shake-up of pensions<\/p>\n