The UK Sustainable Investment and Finance Association (UKSIF) has urged greater long-term investment focus, after yesterday’s Budget failed to strengthen government support for measures outlined in the Kay Review of Equity Markets and long-term decision making.

Kay’s report highlighted the underlying problem of short-termism within UK financial markets and accentuated that long-term relationships need to be built to improve trust. It also stated that there was a need to address the misalignment of incentives throughout the equity investment chain. However UKSIF declared its disappointment that the Budget did not announce measures to mark developments in the run up to the government’s scheduled progress report in 2014 on delivering Kay’s recommendations.

UKSIF head of government relations Caroline Escott said: “It is disappointing that the first Budget after the Kay Review seems to have been a missed opportunity for the Treasury to strengthen the long-term investment agenda.

“A clear public policy framework would encourage asset owners, asset managers and company directors to take the necessary steps to build a positive culture of long-termism along the investment chain.”

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