Labour business plans would be 'double whammy' for pension savings

Proposals outlined at Labour Party conference

James Phillips
clock • 2 min read

Labour Party plans to renationalise core industries and require the largest listed companies to hand 10% of shares to employees would be a "double whammy" for pensions, business leaders have warned.

While designed to put more money in workers' pockets, the proposal to grant employee shareholder rights by a collective ‘Inclusive Ownership Fund' could see pension funds' shareholding diluted, hitting their potential returns. Speaking at the party's conference yesterday (24 September), shadow chancellor John McDonnell said the policy would see workers benefit from payments of up to £500 a year. "We will legislate for large companies to transfer shares into an ‘Inclusive Ownership Fund'," he said. "The shares will be held and managed collectively by the workers. The shareholding will ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Pensions

New occupational scheme launches; BSPS rescue proposals set out

New occupational scheme launches; BSPS rescue proposals set out

Former British Steel workers will be able to ‘reverse transfer’ their pots

Jonathan Stapleton
clock 14 March 2024 • 2 min read
Adviser insight on transitional tax-free amount certificates

Adviser insight on transitional tax-free amount certificates

'A blanket approach should not be taken'

Lisa Webster
clock 13 March 2024 • 4 min read
Spring Budget 24: FCA/TPR given more powers to push better DC value

Spring Budget 24: FCA/TPR given more powers to push better DC value

Chancellor to allow regulators to monitor DC performance

Jasmine Urquhart
clock 06 March 2024 • 1 min read