The chief executive of Standard Life, Andy Briggs, has cautioned Chancellor John Healey that the government must stimulate economic growth in the upcoming Budget to avoid further tax increases. Briggs stated that the UK's ageing population leaves the Chancellor with a choice between driving economic growth or facing a rising tax bill to meet spending commitments.
Chancellor Healey is scheduled to present his first Budget on 28 October. Briggs emphasised the importance of measures to support strong economic growth, arguing that this would make the biggest difference across the tax and welfare system.
Separately, Standard Life, the FTSE 100 pensions group, reported an overall loss of £179m for the first six months of the year. This was attributed to £473m in paper losses on financial protection contracts. Despite this, the company saw a 25% increase in adjusted profit, reaching £563m, and operating cash generation rose by six per cent to £745m.
Briggs also urged the government to avoid speculation regarding pensions in each Budget cycle, stating that it undermines consumer confidence. He called for pensions to be treated as a long-term game with rules set over multiple decades.