Vision for Economic Growth — a roadmap to prosperity 13 Figure 1: Key recommendations Figure 2: Impacts and illustrative benefits OutcomeBig moveShort termMedium term — 2 to 7 yearsLong term Illustrative estimates suggest that these interventions have the opportunity to unlock billions in investment into and for the UK Today2030 #01 Outcome Target impact Illustrative bene昀椀ts between 2024 and 2030 Develop a UK FPS Determine the priority focus Track progress against the strategy Strategy and FPS areas and sectorsTrack progress against the strategy Support the Partnership Council Government's clearly de昀椀ned strategy conditions to support it Potential £100bn investment from the Establish an FPS for UK-based FPS maximises the sector’s for growthPartnership Council insurance and long-term savings industry... contribution to UK jobs and growth. Support the into productive 昀椀nance, including for UK social conditions for growth #02 infrastructure and green energy supply, over the i, vii Fully implement a coming decade from 2024. programme of change Continue planned reforms which will contribute needed structural and regulatory change Up to £75bn in pension capital... for UK pension and Long-term savers in the UK are better Support cultural change across the investment value chain, if LGPS increase allocation to unlisted equities to insurance funds prepared for retirement. More businesses using regulatory and structural changes as key enablers 10% and DC schemes to 5%. Much of which will be can access the capital they need. More ii, vii Raise invested into the UK. Raise investment levels investment #03 international investors are attracted to the levelsMaximise the UK. More high quality jobs are created. Clarify how disparate funding Support 昀椀rms to identify suitable government funding effectiveness of schemes align to strategic opportunities that will best suit their needs every pound of government priorities government support Potential £4.8bn value added to the UK economy... Support the BBB as it tests proposals to open its pipeline of growth There is a lift in inclusive growth and Through widespread adoption of digital veri昀椀cation company investment opportunities to crowd in more investment prosperity for citizens and a rise in UK solutions which will transform digital services and Become a digital- 昀椀rms' international competitiveness. iii mitigate fraud losses. #04 昀椀rst economy Be internationally competitive on data Di昀昀erentiate the UK on data and digital and digitalAccelerate the adoption of Develop a machine-readable £100bn of private sector capital leveraged... UK-based FPS has a strong track record digital veri昀椀cation company 昀椀ling system for the UK The right enabling conditions can unlock the capital Become a #05 in supporting businesses globally that government has said it will leverage as part of its to decarbonise and reach other digital-昀椀rst Anchor the UK iv, vii economy Net-Zero and British Energy Security strategies. Invest in driving sustainability-related goals. as a leader in an innovation and Enable the regulators to Streamline approaches to creating regulatory reform growth mindsetprovide collective leadership on sustainable 昀椀nance cross-sectoral priorities such as digital veri昀椀cation, data, and AI Task regulators with deploying machine-readable and machine-executable regulation, building on Up to £0.7bn additional FPS FDI... e昀昀orts underway by the FCA and the BoE if the proposed FPS Knowledge and Support hub is UK-based FPS accelerates growth and #06 assumed to contribute an annual uptick in FPS FDI prosperity across the UK through v Create the conditions worth up to 6% of 2022 levels. increased FDI into FPS; increased FPS Provide further clarity and commitment around sector-speci昀椀c to scale and Up to £24bn increase in FS exports... policies to deliver on existing net zero commitments exports; and leadership in setting if the proposed FPS Knowledge and Support Hub is accelerate 昀椀nance Pursue world-class for the transition robust and pragmatic international assumed to contribute an average additional uplift promotion and Support the scale-up of private 昀椀nance and de-risking of projects in support of the transition standards around new technologies interconnectivity of approximately 0.9% compound annual growth and sustainable 昀椀nance. on top of the forecasted growth of UK goods and Create con昀椀dence among 昀椀nancial institutions that they can vi support 昀椀nancing the transition without jeopardising their own Anchor Paris-aligned or net zero targets services exports. the UK as a leader in #07 i. The Association of British Insurers (ABI) estimates that from 2024 Solvency II reforms will create “the potential for the industry to invest over £100bn in the next ten years sustainable Scale new, high-integrity in productive 昀椀nance, such as UK social infrastructure and green energy supply.” The value of private insurer investment that could be achieved is highly dependent on the 昀椀nancemarkets and be at Develop an all-encompassing high-integrity voluntary carbon nature of the Solvency II reforms and, speci昀椀cally, the changes to the matching adjustment and how they will be implemented. The PRA is consulting on this later this year. the forefront of new markets (VCM) ecosystem ii. As highlighted by the Chancellor in his Mansion House speech on 10th July. Re昀氀ects £50bn for DC schemes with a 5% allocation to unlisted equities, and £25bn for LGPS with investment opportunities Scale up other high-integrity nature markets and support approaches to protect natural capitala 10% allocation to unlisted equities. The former estimate mirrors the objectives of 昀椀rms in the Mansion House Compact. Government plans to consult on the allocation of the latter estimate for LGPS. Bene昀椀ts are accrued by 2030, with no speci昀椀cation of beginning or end of year. #08 iii. The UK government estimates “widespread use of digital identity products would be worth around £800m per year to the UK economy.” Calculated over 6 years, from 2024- 2030. See UK Goverment digital attributes and trust framework consultation (2022) for more details. Showcase the Establish an FPS iv. Originally published by the Department for Business, Energy and Industrial Strategy, since replaced by the Department of Energy Security and Net Zero and the Department UK’s 昀椀nancial and Knowledge and Support Hubfor Business and Trade. professional services on the international v. Illustrative estimate only to indicate bene昀椀t potential and does not re昀氀ect a projection. Corresponds to a range of approximately to £0.5-0.7bn. Re昀氀ects a base case of 5% stage like never before uplift (+/- 20% range applied) using 2022 levels, which equates to up to 6%. For context, FPS FDI in the past four years (2019-2022) has grown by a compound annual growth Pursue rate of 12%, with strong recovery since 2020. FPS FDI data per fDi Markets and as published by the City of London Corporation in their 2023 report on FPS FDI. See 昀椀gure 14 world-class #09 for further detail. promotion vi. Illustrative estimate only to indicate bene昀椀t potential and does not re昀氀ect a projection. We estimate an additional uplift on forecasted growth rates associated with the Create innovative bene昀椀ts of having an FPS strategy and the role of the Hub in reinvigorating promotional e昀昀orts. Corresponds to a range of approximately ~£19-29bn, rounded to the nearest and inter-Flip trade policy to focus on Create international forums for collaboration, such as multi- networks across services as much as goods billion. Calculated over 6 years from 2024-2030. Assumption of a 50% uplift on the compound annual growth rate for UK goods and services exports from IMF forecasts connectivityjurisdictional sandboxes that build on the work of the GFIN the world results in a range of ~0.8-1.2% additional uplift, rounded to the nearest tenth of a percent. Adjusted for in昀氀ation based on CPI in昀氀ation forecasts. FS export data from UNCTAD Create mechanisms for (worth ~US$117bn in 2022). Forecast of export growth and CPI in昀氀ation from IMF World Economic Outlook — April 2023. government-regulatory- vii. £225bn in total additional investment estimated as an aggregation of the £100bn in insurance and long term savings capital unlocked through Solvency II reforms, the industry partnership to £75bn in pension capital for investment announced in the Chancellorʼs Mansion House speech, and a portion of the £100bn in private capital leveraged as part of the net create and advise on the full zero transition, as stated by the UK Government. We estimate a portion of the net zero capital leveraged will overlap with the unlocked pension capital and insurance and trade toolbox long-term savings capital. We have applied a 50% discount rate on the net zero capital leveraged to account for this overlap. See references 17, 18, and 23 for additional information for each estimate. Supporting recommendation All statistics re昀氀ect rounded values. These estimates may not be mutually exclusive and may involve double counting of some bene昀椀ts if aggregated.