London Stock Exchange: Decline in UK Funds

Lord Evans of Rainow Excerpts

Thursday 13th February 2025 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Lord for his question, and I agree with every word he said. We have been very guided by the Australian experience. We have been clear that UK pension funds are investing a lot less in the domestic economy than overseas counterparts. Australia and Canada are two that have been spoken about. He talks about beefier measures, but the pensions review is the most fundamental review of pensions for a generation, and it is actively considering what further interventions may be needed by the Government to ensure that our reforms to the UK pension system benefit UK growth.

[Lord Evans of Rainow (Con)]

My Lords, the Minister previously referred to corporation tax. Corporation tax in this country is uncompetitive compared to corporation tax across the water in the Irish Republic, where it is about half. The Republic has succeeded in attracting a number of international tech companies to set up their businesses there, at the expense of the United Kingdom. My home town of Macclesfield lost a significant investment of £400 million by AstraZeneca, which went directly into a pharmaceutical cluster in Cork. Can the Minister ask his officials to look into why, notwithstanding our uncompetitive corporation tax, we consistently lose out to the Republic of Ireland? Its civil servants are very good at working around ours, at the expense of the United Kingdom.

[Lord Livermore (Lab)]

The noble Lord says that the corporation tax is uncompetitive, but it is where his Government put it. We have said that we will cap it at that level for the remainder of this Parliament; it is one of the most competitive in the G7. We have also said that if it looks uncompetitive at any point, we will act.