![\"Andy](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2021\/04\/Andy-Haldane-2.png\")
Pensions savings should have a \u201chome bias\u201d that directs a huge stockpile of cash into UK companies, according to Andy Haldane, the president of the British Chambers of Commerce.<\/p>\n
This would help close a funding gap that hampers the growth of small and medium-sized businesses, he told the organisation\u2019s annual conference.<\/p>\n
\u201cUK households hold financial assets of around \u00a39 trillion, more than enough to finance business in Britain,\u201d he said. <\/p>\n
\u201cIn 2000, over half of UK pension assets went into UK equities. Today, it is less than 5%. In money terms, that is a divestment from UK companies of more than \u00a32.5 trillion \u2013 roughly the market cap of every UK-headquartered listed company.\u201d<\/p>\n
Mr Haldane said there was a gulf between the needs of companies and the capital available, and measures taken so far, including the launch of the National Wealth Fund, were making only a modest impact.<\/p>\n
He said the British pension system was the only one in the world that did not have a home bias. His plan would force retirement schemes to channel funds into UK companies as the price of pension tax relief, avoiding the need to deploy taxpayer funds.<\/p>\n
A bolder approach from the\u00a0Government\u00a0to boost investment in UK companies would help stem the exodus of British-listed firms abroad, he said.<\/p>\n
The former Bank of England chief economist, who is tipped to become an adviser to Andy Burnham, is expected to put his pensions proposal at the heart of an economic plan for the incoming prime minister.<\/p>\n
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