MP: Cost Disclosure issue must be resolved
In yesterday’s continuation of the Budget debate, John Baron MP said,
“I commend the Government for this Budget, which I think is more radical than first meets the eye. I say that as someone who is probably making their last Budget speech… After 23 years I shall be stepping down at the next General Election.”
“Let us be clear: there is no doubt that taxes are higher than we would like. I raised that issue with the Prime Minister at Prime Minister’s Question’s questions only last month, but I commended him for the support that he oversaw during the pandemic…I do not think any Government in their right mind would have walked away from that commitment, and it enabled us to bounce back quicker when it came to the economic recovery.”
“I was also pleased to hear about the British ISA…We should remember that the UK stock market is the gateway to financial services in this country, which contribute something like 10% of gross domestic product…Some of us wrote to the Chancellor about this in advance of the Budget, and I was pleased that measures were forthcoming, in particular the emphasis on pension funds to examine their support of UK equities.”
“I would…suggest that the Budget is radical in that I think it represents a shift in thinking…In itself, the National Insurance contributions cut is welcome. I have always believed that National Insurance is a tax on jobs, and that is why I defied my own party’s whip to vote against our previous…policy…to increase National Insurance contributions. However, there has been a marked shift in the tax burden in not just this Budget, but the previous Budget, away from workers to most other forms of income, including savings and pensions, and that is where its radicalism lies.”
“Previously, Governments of both sides have used National Insurance increases to help fund public services, including the NHS. I personally very much welcome this shift. Unemployment is a social evil that corrodes society, and we should remember that, although we have record employment and an unemployment rate one third below the EU average, there should be no complacency. National Insurance cuts will further make work pay, and could be self-funding…”
“I would briefly like to raise the ongoing issue of the cost disclosure régime for investment companies…which is hindering investment in key sectors…However, because of a quirk in EU-retained law, UK investment trusts are having to roll up their corporate and investment management costs when disclosing a cost figure on the European MiFID template feed used by the industry. This double-accounting makes investment trusts look very expensive. It does not happen in other countries...”
“Investors are shying away from Investment Companies, discounts are widening and no new money is going into sectors such as renewable energy and infrastructure. Previously, sector investment trusts raised tens of billions of pounds for these valuable sectors.”
“…in the other place, Baroness Altmann, Baroness Bowles and others are supporting a Private Member’s Bill called the Alternative Investment Fund Designation Bill…I hope the Government will support it…I recommend a visit to the website costdisclosure.co.uk, which sets out the issue in greater detail. I hope the Government are listening. There are ongoing conversations…It needs to be resolved quickly…and I am looking forward to hearing some positive news.”
Notes to Editors:
- A full transcript of John’s speech is online at: https://hansard.parliament.uk/commons/2024-03-11/debates/E1C0237A-4AB2-46A8-B1CD-D276DCAA852A/BudgetResolutions#contribution-E9E53955-48FA-4C24-9143-08410D2E386D.
