10 Jul 2015
The Government's budget: A game of two halves
The first Conservative budget in 19 years really was a game of two halves.
"Fixing the roof while the sun is shining", is how the Chancellor describes his approach to the everyday economy. And in setting out his strategy and game-plan it really has been a Budget of two halves. The first half, delivered on Wednesday by the Chancellor, was one of the most ambitious and fundamental in a generation. The second half was announced today - the new Productivity Plan – which seeks to address the productivity barriers that hold back our economy's growth.
We welcome the plan because it's in the interests of our customers, our shareholders and our future – it will take the concerted effort of the Government and private investors like us, to fix the roof and the very foundations of our economy. If we get this right it will be good for all of us today, as well as the future generations of tomorrow. Low long term capital investment contributes to low productivity, and lower than necessary workforce pay.
At L&G we believe delivering a productivity step-change needs a long-term approach to capital. That is why today also sees a commitment to long term investment in the UK from business leaders, including us, who collectively look after £10 trillion of customers' money. In a letter to the Chancellor (PDF, 270 KB), we have pledged to work with government to "increase investment, productivity competitiveness and exports, through enhanced long-term investment".
There is no extra-time in this game, if we want to deliver a step change in productivity. We've demonstrated our commitment already through our multi-billion investments into infrastructure, including hospitals, care homes and University accommodation, and will continue to do so. It makes economic and social sense. Let's continue to build a stronger economy together.