we would love to do a deal two we would love to do a deal with the uk, but the uk has got to choose whether there was to be close to the us or the eu. right now as we await the u s trump administration, with the stated aim of the uk government getting closer to europe, does that in some way change? to the uk might have a seidu with the us to avoid trump's tariff. all of that is up for grabs, so very interesting timing, this intervention from the government of the bank of england. government of the bank of encland. ~ government of the bank of england-— government of the bank of enclandr , ,., england. we will pick up on some of— england. we will pick up on some of those _ england. we will pick up on some of those issues - england. we will pick up on some of those issues you i england. we will pick up on - some of those issues you raised there. just a broader view from what you expect to hear from the chancellor. there was a critique of their budget that it did not say enough about growth. it was

termed a budget for growth. it actually forecast that growth would not greatly picked up and would not greatly picked up and would go down a little in the next couple of years of the forecast. but we will see today in the speech is forecast. but we will see today in the speec— in the speech is the narrative orthe in the speech is the narrative or the plan — in the speech is the narrative or the plan for _ in the speech is the narrative or the plan for fundamental i or the plan for fundamental reforms or the plan forfundamental reforms that will take years to see an impact on the economy. they are tough politically. she hopes that will turn around what has been a relatively sluggish growth performance in the uk in the past few years. the big reform that we have heard about on the bbc news from the chancellor already previewing her speeches to pensions. she thinks that the uk pension system, the funds in that pension system are too small to make massive investments in infrastructure. and to make risky investments in frontier technology. so she is advocating and indeed will pass legislation to force these pension funds to amalgamate, ten times the size, essentially, so they can make

those investments. drawing on the model of the canadian, australian pension systems which she says of the best in the world. and somewhat ironically, tends to invest more in uk infrastructure than we hear from actual british pension funds. so they're buying up airports, ports and shopping centres and the like. she wants to copy that and deploy the massive vat of uk pension savings towards a domestic uk investment base whether that is infrastructure or high—tech businesses. there high—tech businesses, they do pretty well, britain is brilliant at brand—new science and very good at start—up companies but there comes a point where a start—up company in britain gets to a certain size where it needs global scaling and it needs hundreds of millions and even maybe billions of pounds or dollars of investment. at that point, many top british prospects to become massive companies will leave britain. that is what she wants to address with bigger

pension funds. there is a big feature. she will also in the speech talk in general about financial services. primarily a speech to this city. it was labour that was in charge during the financial crisis and many criticised lax financial regulation and to... crackdown on banks to stop them taking too many risks. she will argue that some of them went to mow far and has not enabled them to take necessary risks. a delicate argument and is designed to turbo—charge growth but it does contain risks within it. there is a similar instinct 20 years ago, one might argue, under instinct 20 years ago, one mightargue, undera labour led to some of the financial crises and some of the banking system went bust. she will say they have learnt the lesson. we will also hear that from her. all of this against the backdrop of

having had to raise taxes substantially at the budget. she says, because she had to fund public services and built a black hole in public finances. that has raised the hackles of businesses, particularly small businesses who have had to find the increase in taxes and national insurance. this is the start of the narrative of how this labour government, having done the budget, wants to try and transform the economy and jump—start growth, which has been sluggish for years. an interesting and important speech, the first of a few of the sort of moments for the new chancellor and for the government. that will lead to a spending review, a full spending review, a full spending review, a full spending review next year, spending review next year, spending increases in public investment and the like. these are very important moments in terms of the growth trajectory because if there's one thing this government and rachel reeves needs its growth in the economy. with growth, you get

betterjobs, you get pay rises for the whole public, you generate tax revenue, you may be able to generate the space for some tax cuts and investments. that is what she needs at what she's trying to generate as she's trying to make difficult long term decisions that have eluded previous that have been busy... let's get back to that subject about prescot and everything else. the important business leader there will be thinking about one thing, the elephant in the room, called donald trump and his plans to rip up the rule book in terms of world trade and whether that will have retaliation and spark, as it is plausible but not definite, the consequence of a potential global trade war. lets pick up on exactly that then. explain to us what is the potential impact of a second donald trump term. this stated oli of donald trump term. this stated policy of donald _ donald trump term. this stated policy of donald trump - donald trump term. this stated policy of donald trump and - donald trump term. this stated policy of donald trump and his. policy of donald trump and his advisers that they would levy tariffs, that is mainly understood as a targeting china which has succeeded spectacularly in some of the

green manufacturing sectors, solar panels, wind turbines, electric vehicles, most famously. and is trying to climb the value chain in terms of electronic chips. the americans think that they have helped found that essentially by offering a ready free market for china's exports. the tramp diagnosis is to stop that. even to stop that surplus entirely by charging very high tariffs. but it is notjust china, that same argument but perhaps a lighter version of that argument is also applying to europe and other countries. they also say that they would tariff everything. every input coming into the uk, ten, to 20%. unprecedented, friend and foe. including the united kingdom, the european union. when you listen to donald trump's announcements on the campaign trail, there was a little bit of force behind his concerns about how the european

union, as he sees it, treat the us economy and that they would face a particular focus, us economy and that they would face a particularfocus, german cars, for example. if that was to happen, what we know privately, the eu have said, is that they have a list of us products that they will tariff, the same. they don't want to do it but if the us does it, the eu will have to reply in kind. if that did happen, you have tit—for—tat, it happens in all different directions, you get to the sort of a situation that we haven't seen since the 19305. we haven't seen since the 1930s. every hope that it will not happen but everybody assumes that the g7 will get together and sort it out and have car valves. the united kingdom with a special relationship with the us will just make sure it doesn't happen somehow. however, when you see who donald trump is appointing to key cabinet positions, watch out for the us trade representative, his book outlines the sorts of plans. my

understanding and the understanding and the understanding of many trade diplomats is that they are serious about imposing them. the question for many western allies in the g7. if they do do this, what do they do? do they retaliate? forthe this, what do they do? do they retaliate? for the uk in particular, if they're caught between a tit—for—tat trade war between a tit—for—tat trade war between europe and the us, how do you deal with that? you do go with? we talked that before. evenif go with? we talked that before. even if everything is focused on china has regard to terrace from the us, does the us diplomatically and trump encourage other countries, allies, to do the same thing with china? to the uk and eu joining with that? or do we accept in heightened role for china in the u elite in a global economy. these were massive that we have not faced before using this tariff tool has been out of fashion. but it could well about to become hugely into fashion. it's important to stress again is

that everything hopes that it will never happen but it's not just that they feel is this is the right thing for trade policy, some people close to the president—elect believe that this is the way to gain tax revenue out of the economy. not through income taxes or wealth taxes, you tax trade, it helps you protect your industry and create jobs. totally fascinating, difficult, potentially dangerous development for the world economy, totally uncertain. potentially, as the imf has suggested, if it gets really bad you could see a hit to the world economy worth 7%, the entire size of the german and french economy. an inflation spike back up again. it's obviously notjust about obviously not just about economics, it's about politics, diplomacy, strategy, we don't quite know where it's going to go. particularly now as we wait for the precise colour and flavour of the trump administration but finance ministers i have spoken to are ready. they don't want this to

escalate but they do look at the situation and say we will be ready if the us really does go through with it. they delete —— we hope they don't but we will be ready. -- we hope they don't but we will be ready.— will be ready. faisal, thank ou so will be ready. faisal, thank you so much _ will be ready. faisal, thank you so much for— will be ready. faisal, thank you so much for that. - will be ready. faisal, thank you so much for that. stay| you so much for that. stay there for us. i will bring you backin there for us. i will bring you back in to brief us a little bit about what these actual speeches are and who the audiences are. because we are waiting, a little bit delayed but we are waiting to hear from the chancellor rachel reeves and then after that from the governor of the bank of england, andrew bailey. they are about to make speeches about the economy at mansion housein about the economy at mansion house in the city of london. these are the live pictures we have, it is a very splendid, formal affair and the camera is just lining up there you can see. microphones are ready. we are expecting to see rachel reeves come to those microphones. when she does, we'll stop talking about faisal, just talk us through

the setup here, what this event is and what it's all about. mansion house is one of the key fixtures in the british financial calendar. it is a moment where, as i said, the chancellor and the bank of england governor can set out more strategic thinking. they can capture, command, if you like, the confidence of very seniorfinanciers. it is like, the confidence of very senior financiers. it is all donein senior financiers. it is all done in the augusta surroundings and pomp and ceremony... surroundings and pomp and ceremony. . ._ surroundings and pomp and ceremony... faisal, pomp and ceremony. _ ceremony... faisal, pomp and ceremony, will— ceremony... faisal, pomp and ceremony, willjust _ ceremony... faisal, pomp and ceremony, willjust interrupt l ceremony, will just interrupt you ceremony, willjust interrupt you as we listen in to the chancellor rachel reeves. it’s chancellor rachel reeves. it's an honour _ chancellor rachel reeves. it's an honour to _ chancellor rachel reeves. it's an honour to be here with you this_ an honour to be here with you this evening. thank you to the city of— this evening. thank you to the city of london corporation for hosting — city of london corporation for hosting us. it is a privilege to follow_ hosting us. it is a privilege to follow the lord mayor's address. and to give my first mansion _ address. and to give my first mansion house speech. as the lord _ mansion house speech. as the lord mayor said, there are so many— lord mayor said, there are so many reasons to be optimistic about— many reasons to be optimistic about our— many reasons to be optimistic about our country. i absolutely share —

about our country. i absolutely share his — about our country. i absolutely share his ambition for our potential. the potential of our financial— potential. the potential of our financial services sector. the potential _ financial services sector. the potential we have to make britain _ potential we have to make britain more competitive and critically. _ britain more competitive and critically, the potential that we have _ critically, the potential that we have to grow our economy. that _ we have to grow our economy. that is _ we have to grow our economy. that is why, both in opposition and now— that is why, both in opposition and now in— that is why, both in opposition and now in government, improving economic growth has been _ improving economic growth has been at — improving economic growth has been at the heart of everything that i_ been at the heart of everything that i am — been at the heart of everything that i am seeking to achieve. in that i am seeking to achieve. in my— that i am seeking to achieve. in my maze lecture, earlier this— in my maze lecture, earlier this year. _ in my maze lecture, earlier this year, i set out my view that— this year, i set out my view that we _ this year, i set out my view that we are in a moment of flux — that we are in a moment of flux a _ that we are in a moment of flux. a new approach is required to build a secure and sustainable growth on the platform of stability, investment, and reform. when i arrived — investment, and reform. when i arrived at — investment, and reform. when i arrived at the treasury, just over— arrived at the treasury, just over four— arrived at the treasury, just over four months ago, i said on day one — over four months ago, i said on day one that economic growth was now— day one that economic growth was now our national listen. i set out — was now our national listen. i set out plans to set up... on

the _ set out plans to set up... on the supply— set out plans to set up... on the supply side of our economy. two weeks _ the supply side of our economy. two weeks ago i delivered my first budget as chancellor of the exchequer. it was once in a parliament _ the exchequer. it was once in a parliament budget, to wipe this state _ parliament budget, to wipe this state clean. it was a budget slate clean. it was a budget that— slate clean. it was a budget that tackled two elements in our plan _ that tackled two elements in our plan for economic growth. first. — our plan for economic growth. first. it— our plan for economic growth. first, it provided economic stability _ first, it provided economic stability. by putting our public _ stability. by putting our public finances back on a firm footing~ — public finances back on a firm footing. that required difficult choices on spending, on welfare, and on tax. but by making — on welfare, and on tax. but by making those tough choices now, we are _ making those tough choices now, we are providing stability for the long _ we are providing stability for the long term. because instability in our public finances leads to instability in our— finances leads to instability in our financial markets. that is not — in our financial markets. that is not good for investment. that— is not good for investment. that is not good for growth and it is not— that is not good for growth and it is not good for business. so by drawing a line under instability, business can now plan — instability, business can now plan for— instability, business can now plan for the future and we have

provided — plan for the future and we have provided stability for our public— provided stability for our public services too. which must now deliver within the spending envelope that they have been sent — envelope that they have been sent through reform they must live within their means. the second _ live within their means. the second step that we took to improve _ second step that we took to improve economic growth in the budget— improve economic growth in the budget was to change course on public— budget was to change course on public investment. public investment was set to fall by nearly — investment was set to fall by nearly 1% of gdp under the nearly1% of gdp under the plans— nearly 1% of gdp under the plans that i inherited. that would _ plans that i inherited. that would have held back our growth potential— would have held back our growth potential for many years to come _ potential for many years to come as— potential for many years to come. as the international monetary fund have set out, low levels _ monetary fund have set out, low levels of — monetary fund have set out, low levels of public investment have — levels of public investment have been a major contributing factor— have been a major contributing factor to— have been a major contributing factor to the uk's weak growth performance. not least because it makes — performance. not least because it makes it harder to catalyse the private investment that we so badly— the private investment that we so badly need. now, as the result— so badly need. now, as the result of— so badly need. now, as the result of the measures that we have _ result of the measures that we have taken, public investment will now— have taken, public investment will now be £100 billion higher over— will now be £100 billion higher over the — will now be £100 billion higher over the next five years. creating _ over the next five years. creating jobs, and driving growth _ creating jobs, and driving growth and opportunity across the united kingdom. this will

be delivered alongside a series of vital— be delivered alongside a series of vital guardrails to ensure that— of vital guardrails to ensure that the _ of vital guardrails to ensure that the spending delivers the very best value for money, provides— very best value for money, provides returns for taxpayers, catalyses — provides returns for taxpayers, catalyses private investments, and significantly boosts growth and significantly boosts growth and productivity. because of the steps that we took, the office — the steps that we took, the office of— the steps that we took, the office of budget responsible and he _ office of budget responsible and he has set out but in the long — and he has set out but in the long term _ and he has set out but in the long term our policies would permanently increase the supply capacity— permanently increase the supply capacity of the economy. but that — capacity of the economy. but that does not represent the height— that does not represent the height of my ambition. i know that— height of my ambition. i know that we — height of my ambition. i know that we can do more. to go further— that we can do more. to go further and faster in realising our growth potential. so that is why— our growth potential. so that is why economic growth will continue _ is why economic growth will continue to be the central mission _ continue to be the central mission in the weeks, months, and years— mission in the weeks, months, and years ahead. having focused on economic stability, and public— on economic stability, and public investment in the budget, tonight i will set out the steps that we are taking to drive _ the steps that we are taking to drive growth across other key areas — drive growth across other key areas that have long been my

priority — areas that have long been my priority. increasing private investments, and performing our economy — investments, and performing our economy. let me begin by our plans— economy. let me begin by our pians to — economy. let me begin by our plans to increase investments. more _ plans to increase investments. more investment is how we spur innovation — more investment is how we spur innovation and growth. it is how— innovation and growth. it is how we _ innovation and growth. it is how we boost efficiency and capacity _ how we boost efficiency and capacity of our economy. and it is how— capacity of our economy. and it is how we — capacity of our economy. and it is how we create the new opportunities and high skilled 'obs opportunities and high skilled jobs in — opportunities and high skilled jobs in every part of our country _ jobs in every part of our country. today i am focusing on how _ country. today i am focusing on how we — country. today i am focusing on how we can _ country. today i am focusing on how we can continue to attract investment across the world. and — investment across the world. and how— investment across the world. and how we continue to increase private _ and how we continue to increase private investments by working in partnership with business. and — in partnership with business. and specifically, with the financial services sector. before _ financial services sector. before entering politics, i worked _ before entering politics, i worked as an economist at the bank— worked as an economist at the bank of— worked as an economist at the bank of england and then in financial— bank of england and then in financial services. before we came — financial services. before we came into government, i was clear— came into government, i was clear that — came into government, i was clear that financial services must — clear that financial services must play a central part in our economic— must play a central part in our economic vision and our plans for economic growth. because i

know— for economic growth. because i know that — for economic growth. because i know that this sector is the crown— know that this sector is the crownjewel in our know that this sector is the crown jewel in our economy. it employs — crown jewel in our economy. it employs 1.2 million people, from — employs 1.2 million people, from london to edinburgh and from — from london to edinburgh and from manchester to belfast. it is one — from manchester to belfast. it is one of— from manchester to belfast. it is one of the country's largest and most _ is one of the country's largest and most productive sectors, accounting for 9% of our economic output. and it is a global— economic output. and it is a global success story, as the lord — global success story, as the lord mayor has said. we are the second — lord mayor has said. we are the second largest exporter of financial services in the g7. but — financial services in the g7. but we _ financial services in the g7. but we cannot take the uk status _ but we cannot take the uk status as a global financial centre _ status as a global financial centre for granted. in a highly competitive world, we need to earn _ competitive world, we need to earn about status and we need to work— earn about status and we need to work to _ earn about status and we need to work to keep it. i have been determined to dojust to work to keep it. i have been determined to do just that since _ determined to do just that since becoming chancellor. just one week— since becoming chancellor. just one week into office, i welcome is the _ one week into office, i welcome is the biggest changes to the uk's — is the biggest changes to the uk's listing in decades. to reform _ uk's listing in decades. to reform our markets,... so we

have — reform our markets,... so we have more _ reform our markets,... so we have more british success stories— have more british success stories like raspberry pi and applied _ stories like raspberry pi and applied nutrition, ip owed right— applied nutrition, ip owed right here in the uk. in our first— right here in the uk. in our first month, we launch the landmark pensions review and i returned — landmark pensions review and i returned later in my speak. in september i will be announced the final— september i will be announced the final stage of our post—crisis reforms to banking... marking the end of ensuring— banking... marking the end of ensuring that banks are well capitalised, working side by side — capitalised, working side by side with the governor strengthen the resilience of our banking system and detecting a banks ability to tend — detecting a banks ability to tend to _ detecting a banks ability to lend to small and medium enterprises and also infrastructure. now we must build — infrastructure. now we must build on _ infrastructure. now we must build on the steps that we have already— build on the steps that we have already taken. in the spring will publish the first—ever financial services growth and competitiveness strategy. this will give — competitiveness strategy. this will give the financial services sector the confidence it needs — services sector the confidence it needs to invest. financial services _ it needs to invest. financial services one of the eight growth _ services one of the eight growth sectors in our modern

industrial— growth sectors in our modern industrial strategy. recognising thatjust industrial strategy. recognising that just as industrial strategy. recognising thatjust as in other— recognising thatjust as in other parts of the economy, we must _ other parts of the economy, we must constantly work to remove barriers — must constantly work to remove barriers to — must constantly work to remove barriers to growth and investment. this approach will ensure — investment. this approach will ensure that we promote our strengths across the world and today— strengths across the world and today we — strengths across the world and today we are setting out the five priority growth opportunities on which that strategy will focus. finn tx, sustainable finance, asset management and wholesale services, insurance and reinsurance and capital markets. we will work in partnership with you on the development of the strategy, ahead — development of the strategy, ahead of its publication in the spring — ahead of its publication in the spring. driven forward by our city minister. by providing the basis — city minister. by providing the basis for— city minister. by providing the basis for long—term stability for the — basis for long—term stability for the sector, we are laying the foundations for more private _ the foundations for more private investment. the uk has the lowest levels of business investment in the g7 as a percentage of gdp. in the budget—

percentage of gdp. in the budget we confirmed plans to capitalise the flagship impact investment, the national wealth fund, _ investment, the national wealth fund, to— investment, the national wealth fund, to invest in the industries of the future and cataiyse _ industries of the future and catalyse over £70 billion of private _ catalyse over £70 billion of private investment. and in the last month alone, the national wealth— last month alone, the national wealth fund has struck a number of deals— wealth fund has struck a number of deals including funding to deliver— of deals including funding to deliver full fibreboard brand across — deliver full fibreboard brand across the uk and support the buiidihg — across the uk and support the building of vital new infrastructure in wales. the pra, _ infrastructure in wales. the pra. the _ infrastructure in wales. the pra, the treasury, and the national— pra, the treasury, and the national wealth fund, will work together— national wealth fund, will work together to crowding investments by insurance based productive assets taking full advantage of the new solvency regulatory regime. that includes investments in clean energy— includes investments in clean energy projects. but i want london — energy projects. but i want london to be the place where the billions needed to finance the billions needed to finance the energy transition are financed. we have already mobilised significant private capital— mobilised significant private capital through the international investment summit last month. including £4 billion— last month. including £4 billion for the east anglian to

wind — billion for the east anglian to wind farm and £2 billion to build — wind farm and £2 billion to build a _ wind farm and £2 billion to build a new solar farms in essex, _ build a new solar farms in essex, yorkshire and wiltshire. this— essex, yorkshire and wiltshire. this week, _ essex, yorkshire and wiltshire. this week, the prime minister welcomed the launch of their ciimate — welcomed the launch of their climate investment funds on the london — climate investment funds on the london stock exchange. tonight we are _ london stock exchange. tonight we are building on those foundations to deliver a world ieading — foundations to deliver a world leading sustainable finance framework. this will be built in partnership with industry and — in partnership with industry and we _ in partnership with industry and we will be co—launching the transition — and we will be co—launching the transition finance council alongside the city of london corporation. this presents a huge — corporation. this presents a huge opportunity for the uk financial services sector. and i financial services sector. and i am — financial services sector. and lam determined financial services sector. and i am determined that we win this race _ i am determined that we win this race for global business. alongside our national wealth fund, — alongside our national wealth fund, we _ alongside our national wealth fund, we must ensure that there are a _ fund, we must ensure that there are a wide — fund, we must ensure that there are a wide range of other vehicles _ are a wide range of other vehicles to drive private investment. tonight i want to focus — investment. tonight i want to focus on _ investment. tonight i want to focus on our plan in one of those _ focus on our plan in one of those key— focus on our plan in one of those key areas, pension funds. 0ur pensions market is one of the largest in the world. there

will be — the largest in the world. there will be £800 billion of assets in workplace to find contribution schemes and £500 billion— contribution schemes and £500 billion in— contribution schemes and £500 billion in assets in the local government pension scheme by the end — government pension scheme by the end of this decade. pension funds— the end of this decade. pension funds will— the end of this decade. pension funds will always play an important role in the gilt market— important role in the gilt market but for too long, pension— market but for too long, pension capital has not been used — pension capital has not been used to— pension capital has not been used to support the development of british— used to support the development of british start—ups, scalars, or to — of british start—ups, scalars, or to meet _ of british start—ups, scalars, or to meet our infrastructure needs — or to meet our infrastructure needs i_ or to meet our infrastructure needs. i have long been of the view— needs. i have long been of the view that— needs. i have long been of the view that this hurts our economy because our highest potential businesses cannot expand _ potential businesses cannot expand. and savers are not seeing _ expand. and savers are not seeing the returns on their investment which they deserve. so i investment which they deserve. so i was — investment which they deserve. so i was pleased with the previous government, led by my predecessor as chancellor, working _ predecessor as chancellor, working with industry took steps _ working with industry took steps through the mansion house, _ steps through the mansion house, to encourage more pension— house, to encourage more pension fund investment into productive assets. i welcomed those — productive assets. i welcomed those reforms and we will take them _ those reforms and we will take

them forward. but now we need to go— them forward. but now we need to go further. that is why one of my— to go further. that is why one of my first _ to go further. that is why one of my first steps as chancellor was to — of my first steps as chancellor was to announce that pensions investment review. led by our first-ever— investment review. led by our first—everjoint treasury and first—ever joint treasury and wp — first—everjoint treasury and dwp miniature pensions, n d met emma _ dwp miniature pensions, n d met emma reynolds. she has worked with many— emma reynolds. she has worked with many of you over recent months _ with many of you over recent months. australian pension schemes— months. australian pension schemes invest around three times— schemes invest around three times more in infrastructure investments compared to two defined — investments compared to two defined contribution schemes in the uk — defined contribution schemes in the uk. and ten times more in private — the uk. and ten times more in private equity. including in high—growth businesses compared to the _ high—growth businesses compared to the uk — high—growth businesses compared to the uk. 0ne high—growth businesses compared to the uk. one of the key reasons— to the uk. one of the key reasons for this is the much larger— reasons for this is the much larger size of their funds. white _ larger size of their funds. while our pensions landscape remains — while our pensions landscape remains highly fragmented. that means— remains highly fragmented. that means that many of our pension funds— means that many of our pension funds do— means that many of our pension funds do not have the capacity to invest — funds do not have the capacity to invest at the scale required and more _ to invest at the scale required and more often than not, it is canadian _ and more often than not, it is canadian teachers and australian professor is reaping the rewards of investing in

british— the rewards of investing in british productive assets through their pension schemes rather— through their pension schemes rather than british savers. that— rather than british savers. that is— rather than british savers. that is not good enough. and we need _ that is not good enough. and we need to— that is not good enough. and we need to change that. so tonight, we are publishing the interim — tonight, we are publishing the interim report of the pensions investment review. it sets out our pians _ investment review. it sets out our plans are to create canadian and australian style megaphones, to power growth in our economy, and start the most significant — our economy, and start the most significant set of changes to the pensions landscape since the pensions landscape since the turner review. underpinned by a _ the turner review. underpinned by a clear— the turner review. underpinned by a clear commitment to legislate for these changes for the first— legislate for these changes for the first time, in the pension scheme _ the first time, in the pension scheme bill next year. we will deliver— scheme bill next year. we will deliver a — scheme bill next year. we will deliver a significant colour consolidation of the contributions market to enable schemes to deliver better saver outcomes — schemes to deliver better saver outcomes while investing to support_ outcomes while investing to support growth. and we will legislate on measures to consolidate the local government pension scheme, one of the _ government pension scheme, one of the largest pension schemes in the world. and require that the 86 — in the world. and require that the 86 local government pension

schemes— the 86 local government pension schemes administering authorities consolidate all of their— authorities consolidate all of their assets into eight balls. these — their assets into eight balls. these reforms will deliver real change — these reforms will deliver real change in _ these reforms will deliver real change in our economy through consolidation of the dc market and the — consolidation of the dc market and the local government pension— and the local government pension scheme into megaphones. previous _ pension scheme into megaphones. previous domestic and international experience suggests that we could unlock around — suggests that we could unlock around £80 billion in in private _ around £80 billion in in private equity and vital infrastructure projects including transport, energy, and — including transport, energy, and housing here the uk. we will take _ and housing here the uk. we will take a more proactive approach to working with investors to ensure that capital _ investors to ensure that capital is directed to the uk's biggest — capital is directed to the uk's biggest growth opportunities. we want to delete creating a ten year _ we want to delete creating a ten year infrastructure strategy to ensure there is a pipeline _ strategy to ensure there is a pipeline of projects to attract that investment. we have established a new pathfinder,

british— established a new pathfinder, british growth partnership, to crowd — british growth partnership, to crowd in— british growth partnership, to crowd in institutional investment into venture capital funds— investment into venture capital funds and innovative businesses here _ funds and innovative businesses here in— funds and innovative businesses here in the uk. this work is already— here in the uk. this work is already making an impact. i can confirm — already making an impact. i can confirm this evening that aegon uk will— confirm this evening that aegon uk will be a substantial cornerstone investor as well as a natwest cushion. they have now _ a natwest cushion. they have now agreed to work with the british— now agreed to work with the british business bank for the launch— british business bank for the launch of the british growth partnership with a view to making _ partnership with a view to making an investment in the initial— making an investment in the initial fund. the final areal want — initial fund. the final areal want to— initial fund. the final areal want to focus on when it comes to investment is the importance of looking — to investment is the importance of looking internationally. last — of looking internationally. last month, with the support of many— last month, with the support of many people in this room, including _ many people in this room, including the lord mayor and barclays, hsbc, lloyds, we hosted— barclays, hsbc, lloyds, we hosted an international investment summit in london. we saw £63 _ investment summit in london. we saw £63 billion of investment flow— saw £63 billion of investment flow into _ saw £63 billion of investment flow into the uk. that shows the potential that we have to

attract — the potential that we have to attract funding from across the world _ attract funding from across the world into our country. what i want — world into our country. what i want to— world into our country. what i want to be _ world into our country. what i want to be clear eyed about the context — want to be clear eyed about the context in — want to be clear eyed about the context in which the uk and its businesses would be operating under— businesses would be operating under in — businesses would be operating under in the years ahead. we face — under in the years ahead. we face geopolitical uncertainty. there — face geopolitical uncertainty. there are other countries who are looking for the very same economic— are looking for the very same economic opportunities as we are _ economic opportunities as we are and _ economic opportunities as we are. and we face structural challenges too. including those which _ challenges too. including those which have come from brexit. it will not — which have come from brexit. it will not be — which have come from brexit. it will not be straightforward to navigate all of these headwinds. we should be honest about— headwinds. we should be honest about that. but as we navigate them, — about that. but as we navigate them, i— about that. but as we navigate them, i will be guided by a clear— them, i will be guided by a clear principle, i will always do what _ clear principle, i will always do what is in our national interest, _ do what is in our national interest, for economy, foreign businesses and for the british people — businesses and for the british people. that means free and open — people. that means free and open trade. especially with our

most _ open trade. especially with our most economically important partners _ most economically important partners. that includes the united _ partners. that includes the united states, our single most important destination for financial services trade. there is so — financial services trade. there is so much _ financial services trade. there is so much potential for us to deepen — is so much potential for us to deepen our economic relationship on areas such as emerging _ relationship on areas such as emerging technologies. i look forward — emerging technologies. i look forward to working closely with president elect trump and his team — president elect trump and his team to — president elect trump and his team to strengthen our relationship in the year ahead. and of— relationship in the year ahead. and of course, our biggest trading _ and of course, our biggest trading partner, is the european union we will not be reversing _ european union we will not be reversing brexit or re—entering the single _ reversing brexit or re—entering the single market old customs union — the single market old customs union but we must reset our relationship. that will be my message when i attend the meeting of finance ministers in brussels — meeting of finance ministers in brussels next month. we must recognise — brussels next month. we must recognise that our our markets -- how— recognise that our our markets —— how markets are highly interconnected and ensure that on the — interconnected and ensure that on the economy and on financial services — on the economy and on financial services our approach supports growth — services our approach supports

growth and delivers investment. and where there are other important economic gratuities for the — important economic gratuities for the uk, important economic gratuities forthe uk, including by engaging with significant and fast—growing economies like india. — fast—growing economies like india, china, and the gulf states, _ india, china, and the gulf states, we will look to realise those — states, we will look to realise those opportunities too. alongside economic stability and higher levels of investment, we need reform. supply—side reform has been a central— supply—side reform has been a central part of our work in the last— central part of our work in the last four— central part of our work in the last four months. through changes— last four months. through changes to our planning system, to unlock— changes to our planning system, to unlock how do housing and new _ to unlock how do housing and new infrastructure, policies to reduce — new infrastructure, policies to reduce economic and inactivity, improve — reduce economic and inactivity, improve skills and bring people back— improve skills and bring people back into — improve skills and bring people back into the workplace and to focus — back into the workplace and to focus on — back into the workplace and to focus on place —based measures to deliver— focus on place —based measures to deliver growth right across the uk — to deliver growth right across the uk i_ to deliver growth right across the uk. i know that the governor will have more to say on the — governor will have more to say on the topic of supply—side reform _ on the topic of supply—side reform shortly. tonight i want to build — reform shortly. tonight i want to build on the work we have done — to build on the work we have done which puts reform at the heart — done which puts reform at the

heart of — done which puts reform at the heart of this government's agenda _ heart of this government's agenda. first, i heart of this government's agenda. first, lam clearthat agenda. first, iam clearthat this— agenda. first, lam clearthat this must— agenda. first, lam clearthat this must include reform of our public— this must include reform of our public services. in the budget i public services. in the budget i set — public services. in the budget i set out _ public services. in the budget i set out our future spending pians — i set out our future spending pians to _ i set out our future spending plans to ensure our public services _ plans to ensure our public services have the investment that— services have the investment that they— services have the investment that they need for the years ahead _ that they need for the years ahead. that additional investment comes with a clear expectation of better value for money— expectation of better value for money and higher productivity. as the — money and higher productivity. as the secretary of state for health — as the secretary of state for health said yesterday, taxpayers welcome the additional investment into the nhs but they worry that it won't _ nhs but they worry that it won't be spent wisely. so reform _ reform will be a central focus right across _ reform will be a central focus right across government. we will use digital— across government. we will use digital technology more efficiently. we will _ digital technology more efficiently. we will focus on intervention. we will we will focus on intervention. we wiiiioin _ we will focus on intervention. we wiiiioin up — we will focus on intervention. we willjoin up services across government to increase efficiency and to _ government to increase efficiency and to bring costs down. we will harness — and to bring costs down. we will harness the knowledge and expertise

of business leaders as we do so, so