Conservative leadership contest: Tom Tugendhat in profile
Security Minister Tom Tugendhat stepped away from his ministerial brief last night to launch an impassioned call for major pension reforms to improve Britain’s economy.
Mr Tugendhat, who came fifth in last summer’s Tory leadership election, said Britain is living through “difficult times” and warned of a “very real draconian threat to the free market”.
He claimed major changes to the way pensions can be reinvested by the Government could get Britain growing, however.
The senior Tory cited recent reports that Chancellor Jeremy Hunt is looking at changing investment rules, and said he was delighted at the news, which is “long overdue”.
Speaking at a right-wing think tank reception, the minister told the audience: “The seeds of the difficulties we face were planted by Gordon Brown.”
READ MORE: Britain sitting on £4.6trillion to boost economy and improve pension returns
“We have trillions of pounds in pensions. The problem is that it isn’t being used to fund businesses and invest in the future, generating jobs and wealth.
“Instead almost 2-3rds of our pensions are invested in Government debt and are used not to stimulate a vigorous free market but to service the state’s propensity to spend.
“That’s nationalising our past and constraining our future.”
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He said the current system is forcing domestic businesses to look abroad for funding, leaving Britain “exposed to foreign pressures” and “too heavily reliant on the whims and fancies of foreign finance”.
Mr Tugendhat said such reforms would “reawaken the intergenerational deal, that sees old money support new ideas”.
He added major pension reforms will “secure the future of our country and our future prosperity”.
A week ago it was reported that Jeremy Hunt is planning on unveiling reforms “aimed at jumpstarting retirement funds’ investment in the UK economy.
The FT reported that Treasury officials are considering regulatory changes to channel more UK pension fund investment into “riskier companies” such as start-ups.
The senior Tory also took a swipe at “some un-conservative policies going on around Westminster”.
He criticised the recent row over whether Rishi Sunak was introducing supermarket price controls, something that would be a “recipe for trouble if ever I heard one”.
No. 10 denied ever planning on mandatory price controls.
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