New City minister reaffirms Labour’s retail investment push

The government’s new City minister has doubled down on the government’s commitment to overhaul the UK’s investment culture and encourage more Brits to enter the stock market, including its new squirrel-themed nationwide campaign.

Economic Secretary to the Treasury Rachel Blake, who took over from Lucy Rigby three weeks ago, noted that “too many people have been left without the help they need” to begin investing, leaving people to retreat into cash rather than spurring economic growth.

Speaking at the Investment Association conference, Blake said: “As we work… to tackle the barriers to growth, the government wants to ensure a new generation of investors shares in this success. 

“Building a retail investment culture is a central pillar of our strategy… for too long, too many people have been left without the help they need to get started with investing.”

Savvy to the rescue?

The government has introduced a flurry of measures to boost domestic retail investment, including slashing the cash ISA ceiling to £12,000, and working with the FCA to roll out targeted support.

Targeted support allows firms to provide tailored financial suggestions to groups with shared needs, in a bid to bridge the advice gap and free firms from the fear of going beyond what is regulated and being penalised.

But most recently the government has invested heavily into its new industry-backed nationwide campaign in a bid to encourage more Brits to invest.

The ‘Invest for the Future’ campaign employs Savvy the Squirrel to carry the message across the UK, with the furry star visible on bus stops and billboards.

Blake dubbed the mascot the “new investment expert in town”, claiming the squirrel has “shown people up and down Britain that investing is a natural next step” when planning financially.

Some City figures have questioned the campaign, calling it out for lacking information on certain areas of investing and its partnership with certain investment firms who have run into problems attracting and retaining consumers.

Slashing tape and ending ‘quasi-regulators’

Blake, who is the MP for Cities of London and Westminster, also reaffirmed the government’s intention to slash red tape and modernise outdated regulations that harm economic growth and prevent firms in some instances acting in the best interest of consumers.

She said: “The government’s role is not to dictate innovation, but to create the conditions in which it can thrive, clear regulation, open markets, and the confidence to invest. 

“Getting that right will unlock growth and productivity benefits that will be felt by working people across the country.”

In its bid to strip back regulation, the government is also reforming the Financial Ombudsman Service, “ending its position as a quasi-regulator”.

The overreach from the ombudsman has ultimately created tension and a lack of regulatory alignment with the FCA, creating further uncertainty and confusion for both financial firms and consumers and preventing some from tapping into the stock market.

The government also introduced the Financial Services and Markets Bill in the King’s Speech last month, which aims to streamline the senior managers and certification regime, ultimately removing the regulatory burden by 50 per cent.