As we approach the Labour government’s Autumn Budget, the conversation about how to deliver sustainable growth has never been more important. Every lever for economic expansion must be pulled, from productivity and innovation to private investment and trade. If the government is to meet the ambitions set out in its manifesto, it must look everywhere for new sources of momentum. One lever that has been consistently overlooked by governments of all political stripes, is the retail investor.
For too long, people across the UK have been treated primarily as consumers or savers, rather than as participants in the nation’s economic success. Yet millions of individuals could play a transformative role in funding growth, innovation and resilience. According to Barclays, there are 15 million UK adults who hold “excess savings” totalling around £610bn in low-interest deposit accounts, earning virtually nothing after accounting for inflation.
These are savers who already hold more than six months’ income in cash. That money could instead be working productively, boosting capital markets, helping businesses expand and supporting national renewal. The Labour government and the Chancellor, Rachel Reeves, have a rare opportunity to change this dynamic and, in doing so, to reshape how growth is built and shared across the economy.
The government’s approach – mission-driven, targeted interventions designed to drive sustainable growth while avoiding broad-based tax hikes – is the right one. But for those missions to succeed, the private sector must be fully engaged, and retail investors must be part of that story. A commitment to stimulating retail investor growth would have lasting benefits: it would deepen domestic capital markets with additional liquidity, expand financial inclusion and drive greater social and economic equity. When individuals have both the opportunity and the confidence to invest, they are not only building their own futures but contributing directly to the nation’s prosperity.
Capital.com’s own new research, Fear or Fortune? A Research Report Assessing Attitudes to Investment and Risk in the UK, 2025, highlights the challenge, and the potential. It shows that the UK remains a nation of cautious savers rather than confident investors, preferring to buy unproductive property assets rather than shares in businesses. Many still view investing as risky, complicated or reserved for the wealthy. Low levels of financial literacy compound these fears. Two-thirds say investing feels complicated or hard to navigate. Strikingly, few people see inflation as a financial risk, even when leaving money in cash accounts means you are very likely to lose wealth over time.
People worry about scams, can’t access relevant financial advice and struggle to understand the language of markets. Even those who have dabbled in investing often lack the time or confidence to go further. The proliferation of online trading platforms has made access easier than ever before, but access without understanding is not empowerment. London is home to one of the largest equity markets in the world, but British investors have been missing out.
This gap in knowledge and confidence has real consequences. When individuals hesitate to invest, businesses struggle to access the long-term capital they need to innovate and grow. A nation that saves but does not invest limits its own potential. To change that, we need to not only make markets accessible but also support them with education too. Our research found that when people are shown how inflation quietly erodes the value of their savings, their attitude to investing changes dramatically. Once they understand that doing nothing carries its own risks, they become far more open to participation. Education changes behaviour, and that change can drive growth from the ground up.
There are lessons to be learned from abroad. Sweden offers a powerful example of how to build confidence and participation through education. There, financial literacy is treated as a civic skill, introduced early in schools and reinforced throughout adult life. Citizens are encouraged to “learn by doing”, supported by practical, transparent information and clear, jargon-free tools. This approach has produced one of Europe’s most active and confident retail investor bases. The result is both stronger financial resilience for households and deeper pools of capital for the real economy.
The UK can and should follow suit. Financial education must be treated as a national economic strategy, not a social afterthought. It needs to be clear, relevant and accessible. People told us they prefer learning that is visual, concise and tied to their personal goals, from buying a home to planning for retirement. They want trustworthy sources, independent of political or commercial influence, which help them understand risk and reward in practical terms. This will require partnership: government, regulators, educators and responsible fintechs must collaborate to deliver a nationwide framework for adult financial learning.
A confident investor base benefits everyone. It strengthens household finances, makes citizens less vulnerable to fraud and raises expectations for transparency across financial services. More importantly, it aligns perfectly with Labour’s mission-driven vision for growth: empowering people to take control of their financial futures, while ensuring that the gains of prosperity are more evenly distributed. If this government is serious about delivering on its manifesto, about creating an economy built on inclusion, confidence and opportunity, then it must look to the retail investor as both partner and catalyst. A national commitment to financial literacy and participation would help turn savers into investors, consumers into stakeholders and households into engines of growth.
When people are empowered to learn by doing, confidence follows, and with confidence comes capital, innovation and lasting prosperity. The Labour government has the chance to do the same here: to ensure that growth is not just achieved but shared.
Capital.com is an execution-only brokerage platform and the content provided by Capital.com is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.
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