If Labour wins the next election, they will create objectives for supporting businesses owned by women by using the state-owned British Business Bank. They will also conduct an investigation into the lack of financial access for women.
On Monday, Tulip Siddiq, the shadow City minister, will reveal the plans for the party’s financial inclusion agenda. These initiatives were examined by 10 prominent figures in the City earlier this year as part of a review of Labour’s financial services strategy.
Siddiq has announced that the British Business Bank (BBB) will have two new performance targets. The BBB, which played a significant role in managing Covid relief funding, will now have an “overall investment allocation target” for businesses owned by women and ethnic minority founders. Additionally, the BBB will be obligated to share reports on the diversity of funding applicants.
The specific amount of funds it aims to obtain has not been determined yet, but will be decided in partnership with the BBB, as stated by Siddiq’s office. Despite this, a study conducted by the BBB in 2019 revealed that a mere 1% of venture capital investments in the UK were directed towards businesses founded by women.
The commitment of funding will be announced at a gathering honoring women in the City, to be held at the headquarters of the Association of British Insurers (ABI) on Monday. The audience will include women from various sectors within the insurance industry.
The Labour party plans to initiate a review of financial exclusion faced by women. This will be overseen by a committee led by a Treasury minister, in collaboration with other government departments. The goal is to address the obstacles preventing women from receiving the same financial opportunities as their male counterparts.
A comprehensive examination, including government officials and financial companies, will address the issue of inadequate utilization of financial guidance and the underlying reasons for the imbalance in pension savings between genders, with concerns that a woman in her 50s typically has only one-third of the retirement funds of a man.
According to Siddiq, the plan proposed by Labour for financial services aims to promote inclusivity and opportunities for women in higher positions, addressing the issue of financial discrimination faced by women in our society.
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“We must address the root causes of women’s lower financial literacy, as well as address the ‘financial advice gap’ and the alarming ‘gender pensions gap.’ These gaps result in women having to deal with much greater financial uncertainty than men when they retire.”
“A proposed strategy by the Labour government aims to address financial exclusion among women through a comprehensive review. This will involve collaboration across different departments to pinpoint and eliminate barriers hindering women’s ability to make sound financial choices.”
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The BBB stated that they could not provide a statement regarding Labour party policy.
According to a report from the Sunday Times, the Labour party has selected a number of notable business figures to serve on a taskforce aimed at providing guidance on establishing a national wealth fund. These individuals include Mark Carney, former governor of the Bank of England, Amanda Blanc, CEO of Aviva, and CS Venkatakrishnan, head of Barclays.
Source: theguardian.com
