Hunt: Govt cannot direct private sector
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Chancellor Jeremy Hunt has said the government can enable reform but not direct the private sector like it can with the public sector. His comments come in the wake of pensions industry concern over suggestions by the lord mayor of London that pension funds could be forced to invest in growth assets.
Speaking at an event by the Centre for Policy Studies thinktank on Monday, Hunt said: "When it comes to the private sector we can only enable reform rather than direct it, but we will play our part."
Hunt mentioned pension funds in the context of private sector productivity.
"For an enterprise economy we need more business investment," he said, adding that the government was "looking closely at the way our pension funds operate to consider avenues for reform".
Speaking at an event by the Centre for Policy Studies thinktank on Monday, Hunt said: "When it comes to the private sector we can only enable reform rather than direct it, but we will play our part."
Hunt mentioned pension funds in the context of private sector productivity.
"For an enterprise economy we need more business investment," he said, adding that the government was "looking closely at the way our pension funds operate to consider avenues for reform".
The remark on not directing the private sector will be met with relief by pension fund representatives, some of whom had expressed concern about recent suggestions that private sector pension funds could be mandated to invest in certain assets. Pension trustees have a fiduciary duty to invest in the interest of members.
Hunt made the statements as he announced an overhaul of output measurement in the public sector, describing it as "the most ambitious public sector productivity review ever undertaken by a government".
Does Hunt’s statement reassure you that there are no plans to override fiduciary duty?
