{"id":10748,"date":"2011-06-28T09:27:00","date_gmt":"2011-06-28T08:27:00","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=10748"},"modified":"2011-06-28T09:27:00","modified_gmt":"2011-06-28T08:27:00","slug":"last-year-british-business-raised-1-3bn-in-new-share-issues-despite-the-fact-that-we-paid-80bn-into-pension-funds","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2011\/06\/28\/last-year-british-business-raised-1-3bn-in-new-share-issues-despite-the-fact-that-we-paid-80bn-into-pension-funds\/","title":{"rendered":"Last year British business raised \u00c2\u00a31.3bn in new share issues despite the fact that we paid \u00c2\u00a380bn into pension funds"},"content":{"rendered":"

According to the FT<\/a>:<\/p>\n

Last year, UK companies raised just \u00a31.3bn in new equity, net of buy-backs and acquisitions.<\/p><\/blockquote>\n

As my research has shown<\/a>, we pay about \u00a380 billion a year into UK pensions funds.<\/p>\n

And that relief cost more than \u00a0\u00a336 bn in 2009-10<\/a>.<\/p>\n

So for \u00a380 billion invested at a cost of \u00a336 billion we got \u00a31.3 billion of net new\u00a0investment\u00a0in the UK economy.<\/p>\n

What happened to the rest? Well, charges take a big slug. And then the residue was speculated by the City - resulting in\u00a0more\u00a0charges arising for the\u00a0benefit\u00a0of the City, and not pensioners. You can see this easily enough for yourself: the fact that the FTSE has risen so steadily when there is no obvious reason for it to do so given the mess we're in is in no small part down to the fact that this wall of pension money arrives month in, month out to keep the City going.<\/p>\n

But hardly a penny goes into the UK's productive eco0nomy that will keep people at work until they reach their new, extended, retirement ages. The money goes into City bonuses in the main.<\/p>\n

That's the scandal of the UK pension industry.<\/p>\n

And it's why I say one quarter of all UK pension contributions should be used to invest in new jobs as a condition of the tax\u00a0relief\u00a0given. In the last year that would have\u00a0released\u00a0almost \u00a320 billion of new funds to British business. Think what that would do for growth! What can be said with certainty is that it would be a lot more than\u00a0speculation\u00a0ever will contribute.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to the FT: Last year, UK companies raised just \u00a31.3bn in new equity, net of buy-backs and acquisitions. As my research has shown, we
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