Financial markets reform ‘essential to make UK high-investment market’

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Reformation of economic demands is essential if the UK is to grow a high-investment, high-fecundity, high-wage market, a statement from a think tank has recommended.

Despite being a prominent management, the financial sector is “not adequately supporting” long-term finance in the UK local market, with minute firms “frequently unable” to access outstanding bank lending, the analysis paper from the Institute for Public Policy Research Commission on Economic Justice stated.

The report entitled Financing Investment: Reforming Finance Markets For The Long-Term contended reforms of the UK’s financial sector should be converged on “improving the flow of capital to the businesses most in need of investment.”

The statement closed that developing longer-term corporate investment required a “stronger alliance of the incentives of firms with the savers who eventually own their shares”. It pushed the Administration to dismiss the “market maker” relief on stamp duty reserve tax – a stamp duty of 0.5% on the acquisition of business shares – as the first action towards a “Robin Hood” tax.

The move would decrease short-term speculative negotiating and raise at least £1.2 billion per year by the 2020s, the statement stated. Alfie Stirling said, “A lack of investment in the UK is costing savers, who would otherwise be getting a better return on their property; employers, who are dropping out on higher profits; and workers, who are experiencing the worst decade of pay increase in more than a century.

He also added that “Reforming financial markets is key to upgrading the UK to a high-investment, high-productivity, high-paying economy. This involves hard line new influences in stock markets through tax and legal reform so that they are better adjusted with the rest of the economy.”