In this week’s Enews, we look at government efforts to reunite young people with their Child Trust Funds. There are also warnings for the government on the negative impact of business rates and the UK’s economic security to update you on.

• Government boosts efforts to help young people find their Child Trust Funds
• Business rates system a major brake on UK investment and competitiveness
• UK’s economic security at risk

The government will contact thousands of young people about forgotten Child Trust Funds (CTFs) in a bid to reunite account holders with their accounts that are now worth £2,200 on average.

CTFs were introduced by the government in 2005 and applied to children born between 1 September 2002 and 2 January 2011.

The government is now undertaking an extensive awareness campaign urging young people to locate their CTFs through the free ‘Find My Child Trust Fund’ service on GOV.UK.

Many young people are unaware they have a CTF and over 750,000 accounts are unclaimed. The government says it is determined to act so every young person that has a CTF is aware of how to access it.

In order to build on existing efforts, HMRC will be writing to all 21-year-olds whose accounts remain unclaimed to make them aware they have a CTF.

Economic Secretary to the Treasury, Lucy Rigby, said:

‘Hundreds of thousands of young people in this country don’t know they have a CTF, let alone how to access it. Some will have a couple of thousand pounds sat there that would really help them as they begin adult life.

‘I’m determined that those who have CTFs are made aware they have this money.

‘Together, we will ensure funds from these Child Trust Funds can be accessed by young people to help give them the best start to adult life.’

Internet link: HM Treasury website

The UK’s business rates system is acting as a major brake on investment, productivity and economic growth, warns the Confederation of British Industry (CBI).

Almost a third of the 700 firms surveyed said that the system has played a significant role in cancelling, reducing or delaying planned investment in their property.

The CBI says that for the second consecutive year, the UK has the highest property tax levels in the OECD, with property tax as a share of GDP four times higher than Germany.

Businesses say that the level of their business rates bills and the system’s unpredictability, complexity and ‘cliff edges’ are undermining confidence and deterring investment, it adds.

The CBI is urging governments at a national and devolved level to deliver fundamental reform to boost competitiveness and support long-term investment across the UK.

Louise Hellem, Chief Economist at the CBI, said:

‘Business rates are no longer just a cost of doing business – they’re a major tax on ambition and one that effectively penalises investment.

When a single refurbishment can trigger a 40% increase in rateable value, or a £1 change can move a firm from one band to another and add £39,000 to their bill, the system is clearly not fit for purpose in a competitive, modern economy. Reform of the business rates system is no longer a ‘nice to do’, it’s an economic necessity.’

Internet link: CBI website

The government must prioritise the UK’s economic security, after 10 years of geopolitical shocks have repeatedly damaged growth, says the British Chambers of Commerce.

Businesses in the UK have been left permanently bruised by the Pandemic, Brexit, wars in Ukraine and the Middle East, supply chain chaos and US tariffs.

The business group sets out urgent steps needed to secure vital manufacturing inputs and stop British competitiveness declining in an increasingly unstable world.

It says the Prime Minister must take cross-government responsibility for protecting the UK economy from external crises after years of neglect by successive governments.

The BCC argues that keeping the UK’s position as a major trading nation depends on secure access to key inputs such as energy, steel, semiconductors and growth minerals. Demand for some materials is set to rise massively over the next decade, and domestic production cannot meet future needs.

Shevaun Haviland, Director General of the BCC, said:

‘Over the past decade, British businesses have weathered some of the toughest economic shocks we’ve faced in the past 100 years. Through sheer resilience and ingenuity, they have kept trading in an increasingly unpredictable global environment.

‘But it’s clear that this is not enough. The UK’s inadequate economic security has become a drag on growth, competitiveness and national strength; yet it is still not given the focus and urgency it demands.

‘The message from business is clear: delay is a luxury the UK can’t afford. The Prime Minister must act now, match the pace of our competitors, and put economic security at the heart of our national growth strategy.’

Internet link: BCC website