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Capitalist UK doesn’t have enough capital, says insurance CEO

  • He suggested the government should create a fund to support new businesses and relax regulation on pension funds so these could be invested in startups
  • The U.K.'s finance minister Phillip Hammond is set to present the new budget later this month

The U.K. might be a capitalist society, but it doesn't have enough money to support new businesses and real growth, the CEO of Legal and General told CNBC on Wednesday.

As the U.K.'s finance minister prepares to deliver a new budget later this month, Nigel Wilson told CNBC: "We have capitalism in the U.K. without enough capital."

"We've got to figure out how we get more capital to get real economic growth here in the U.K. and a fairer society," Wilson said.

He suggested the government should create a fund to support new businesses and relax regulation on pension funds so these could be invested in startups.

"I think (Phillip Hammond) should absolutely say the government is going to support these initiatives (startups) by creating a fund, which the government could contribute towards," Wilson said.

"And relaxing some of the regulations around U.K. pension funds for investing in this long-term patient capital, which is what we need in the U.K."