A new report from TheCityUK urges the government to take decisive action to transform the UK from a nation of cautious cash savers into confident investors.
The report, ‘From cash to confidence: Building an investing nation’, highlights that while the government’s Edinburgh, Leeds and Mansion House reforms have laid important groundwork, individual investors have not received the same strategic focus as institutional investors.
It warns that low household investment participation undermines competitiveness, starves UK companies of domestic capital, and deepens financial inequality. With people living longer and public finances under pressure, the UK must act now to set a long-term vision for individual investment.
Research shows that despite households saving £1 trillion in cash since 2020, nearly 15 million people are holding surplus wealth in cash, missing out on opportunities to build financial security, resilience, maximise returns and support UK growth. Only one in four UK adults invests outside their pension—the lowest rate in the G7.
With the government committed to fostering a more investment-focused culture within the UK by 2035, the report sets out three key recommendations to encourage more individuals to invest over the coming decade and urges greater collaboration between industry, government and regulators to make the step change needed. The asks include:
- Adopting a ‘North Star’ national investment strategy: Government should commit to a long-term, cross-departmental strategy that aligns tax policy, regulation, and education to foster a culture of individual investment. This strategy should be led by HM Treasury, with ministerial ownership and a clear roadmap for implementation.
- Developing an Individual investment scorecard: Government, regulators, and industry should co-develop a scorecard to track not just the amount invested, but also participation rates, confidence levels, and outcomes across demographics and regions.
- Establishing a national financial education framework: Government should make financial education systematic, embedding it in schools, workplaces, and key life moments. Building on the recent curriculum and assessment review recommendations it should mandate investment education in secondary schools, encourage workplace learning, and set a national literacy target to raise UK financial literacy to at least the OECD average by 2035.
Miles Celic OBE, Chief Executive Officer, TheCityUK, said, “Turning the UK into a nation of investors is a long-term project. However, recent reforms, industry mobilisation, and technology innovation create a unique window for a clear coordinated strategy. Without this, the UK risks policy drift, households’ risk being less financially resilient and UK companies will be short of capital for growth.
“With the right strategy, education and measures in place, and good coordination between government, regulators and industry, we can unlock the full potential of UK household savings, drive economic growth and build a more resilient society.”
ENDS