The report recently published by the Centre for Policy Studies (CPS) on the economic benefits of wider share ownership is truly commendable. It reminds me of a time 37 years ago when my father, whom we affectionately called Stan The Man, would call me after seeing a ‘Tell Sid’ advertisement on TV for the upcoming privatization of British Gas. He would ask my opinion on whether he should buy some shares, often sipping on his favorite Remy Martin brandy. I advised him to make the purchase, and it turned out to be one of the rare occasions when he sought my advice and benefitted financially as a result. From that point on, my dad became an investor and built his own investment portfolio. ‘Tell Stan’ transformed him into an investor for the rest of his life.
Although the CPS report does not explicitly mention privatizations as a means of promoting wider share ownership among today’s adults, the spirit of ‘Tell Sid’ continues to live on. The author of the report, Nick King, proposes that the Treasury and the London Stock Exchange launch a modern ‘Tell Sid’ campaign to encourage households to invest surplus income instead of simply saving it. This would be beneficial for individuals who stand to gain better returns than what they receive from their savings accounts at high street banks. Additionally, it would support UK businesses and stimulate economic growth.
King suggests other ideas for promoting share ownership, such as simplifying the Isa regime by eliminating the distinction between cash and stocks and shares Isas. This would result in fewer people choosing cash and make it easier for others to transition from cash to shares. He also recommends the government establish an investment fund that retail investors can buy into, providing them with confidence to invest.
The government appears to be receptive to the recommendations in the report, with Andrew Griffith, Economic Secretary to the Treasury, expressing support for wider share ownership. Treasury officials are reportedly working on plans for a ‘Tell Sid Mark II’ campaign.
While some argue that wider share ownership is not currently a top priority due to pressing issues like inflation and energy costs, it’s crucial that we encourage investment in UK companies to secure our future as an economic powerhouse.
If you have any thoughts on the CPS report, please reach out to us.
Discussing insurance world’s hot air, my colleague Rosie Murray-West recently encountered an outrageous situation. Esure, her insurer, justified a threefold increase in her home insurance premium by attributing it to changing weather patterns. This excuse seems ludicrous since Rosie’s house is located on a hill in London, far from flood-prone areas. After shopping around, Rosie found another insurer willing to cover her home and contents for just over £400, highlighting the importance of always finding the best deal and not blindly trusting insurers.
In more positive news, the Premium Bond prize rate is set to increase to four percent next month. While winning a prize is a matter of chance, it remains an enjoyable and potentially lucrative option compared to low-interest savings accounts.
Turning to company annual general meetings (AGMs), these events hold great significance for shareholders as they provide the opportunity to engage with those responsible for running the company. However, the AGM experience is gradually being digitized, with many companies now streaming meetings online. While this ensures broader accessibility, it also undermines shareholder participation and enables companies to control proceedings. Retailer Marks & Spencer faced criticism for its recent digital-only AGM, prompting them to reconsider their approach. It is important that shareholders are embraced and listened to, while boards accept the responsibility of answering challenging questions.
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