Key facts
- Standard Life CEO Andy Briggs warned the UK government must focus on economic growth in the upcoming Budget.
- Briggs stated that a lack of growth will force higher tax increases to fund government spending.
- He called for a long-term approach to pension policy, free from annual budget speculation.
- Standard Life reported a statutory loss of £179m for the first half of the year.
- The company's adjusted profit rose 25% to £563m in the same period.
The chief executive of Standard Life, Andy Briggs, has urged the UK government to prioritize economic growth in the upcoming Budget, warning that a failure to do so will force ministers to implement higher tax increases in the future. Briggs stated that driving economic growth is essential for the country's tax and welfare system, especially given the challenges posed by an aging population and rising borrowing costs.
Chancellor John Healey has not ruled out further tax hikes in his first Budget, scheduled for October 28. This comes amid speculation of significant tax increases, following previous Budgets under former Chancellor Rachel Reeves that raised substantial amounts. Briggs emphasized that "a series of measures to really support driving strong economic growth" would be important for Healey to outline.
Financial services leaders are concerned about potential revenue-raising levies and are advocating for the government to maintain the current 25% tax-free pension lump sum. Briggs specifically called for an end to the speculation surrounding pension rules in each budget cycle, arguing that it undermines consumer confidence. He believes pensions should be treated as a long-term commitment with stable rules.
Standard Life recently reported a statutory loss of £179m for the first six months of the year. This was largely due to £473m in paper losses on financial protection contracts used to hedge against market volatility. Despite this headline figure, the company's adjusted profit increased by 25% to £563m, with operating cash generation up 6% to £745m, putting the firm on track for mid-single-digit annual growth.