View more on these topics

CBI urges Govt to consider infrastructure dividend tax credit

John Cridland

The Confederation of British Industry is pressing the Government to consider introducing a dividend tax credit on investments in new infrastructure projects in a bid to boost pension fund interest in the sector.

In his autumn statement in November last year, Chancellor George Osborne unveiled plans to unlock £20bn of private investment for public infrastructure projects.

Osborne said: “What we are seeking to do is get the pension funds together in a private sector vehicle where they can cooperate and invest in British infrastructure.”

The CBI has today produced a report outlining a series of recommendations designed to make infrastructure investment more attractive to pension funds.

These include introducing a dividend tax credit targeted purely at new infrastructure projects in order to make the investments more attractive to defined-benefit pension schemes.

The business lobbying group also wants the Government to lift the credit rating on “greenfield” projects, which it says tend to have a riskier construction phase.

The CBI proposes raising the credit rating on these projects to above investment grade BBB-.

CBI director-general John Cridland (pictured) says: “Infrastructure spending offers the UK the elusive growth boost we are all seeking.

“Business has been disappointed that we haven’t made more headway in the past six months.

“To help make investors an offer they shouldn’t refuse, the Government must enhance the credit rating of brand new projects, extend capital allowances to cover all types of infrastructure, ensure Solvency II doesn’t act as a brake on growth and consider the introduction of a time-limited dividend tax credit for pension funds investing in new projects.”


Barclays launches structured investment platform

Barclays has launched online pricing and execution platform Comet for wealth managers to trade structured products. The platform will allow wealth managers to trade and execute tailored investment products across a range of assets. Lisa Chaudhuri, who works within UK investors solutions at Barclays, says: “Comet is a major step forward from existing online propositions […]

Investec appoints Nelson and Whall for global energy fund

Investec has appointed Tom Nelson and Charles Whall to manage its global energy fund, Money Marketing understands. Nelson joins from Guinness Asset Management while Whall is joining the firm from Newton. Last month Investec announced the departures of Mark Lacey and Jonathan Waghorn, co-portfolio managers of the Investec global energy strategies. The pair are set […]


The Technical Quiz- May 24

To help you to keep up with the fundamentals of tax, retirement and financial planning, try answering these five questions. QUESTION 1 The maximum loan to a sponsoring employer that can be made by a SSAS is A) 45% of the fund value plus three time the ordinary annual contributionsB) 50% of the fund value […]


Pfeg wants MAS to fund financial education in schools

Personal Finance Education Group chief executive Tracey Bleakley wants the Money Advice Service to outsource a £50m five-year programme to embed financial education in the national curriculum. In February, the FSA doubled the MAS’s annual budget to £86.8m in 2012/13, with £46.3m to be used to deliver “money advice” and £40.5m for debt advice. Speaking […]

Greece: the sideshow continues

Artemis managers James Foster, Mark Page and Laurent Millet comment on the Greek deal, describing it as “just another fudge” getting in the way of bigger developments in China, the UK and the US. To read the full article click here.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm