On October 14, Sir Keir Starmer will preside over the UK International Investment Summit, a key event aimed at demonstrating the government’s commitment to supporting economic growth and wealth generation. Unlike many such gatherings that tend to be mere talking shops, this summit holds significant importance as it marks a crucial step towards revitalizing an investment culture that has languished for decades.

The actions taken by the government thus far indicate a long-term vision to address identified challenges. Regardless of opinions on Labour’s methods, it reflects a broad perspective and a willingness to embrace bold strategies, aiming for a favorable outcome in the long run.

At the heart of investment lies the principle of risking capital in anticipation of future rewards. Unfortunately, Britain’s investment culture has gradually deteriorated, with a prevalent tendency to favor inaction over action.

This trend is evident across various sectors. There exists an overwhelming focus on avoiding pitfalls, exemplified by the Labour Party’s cautious ‘Ming vase’ campaign strategy. Critics have noted its lack of ambition, as leaders seem more concerned with averting mistakes than proposing transformative policy shifts.

This risk-averse mindset inhibits the ability to pursue opportunities that could yield significant benefits, which is essential for fostering growth and generating wealth.

This pattern extends into the public markets, where a conservative investor base has not been conducive to nurturing high-growth companies. Although incentives for pension funds to minimize risk play a role, they are not the sole contributors to this issue. The emphasis in Britain on delivering immediate cash returns to shareholders often undermines the pursuit of long-term growth.

The prevailing ‘safety first’ mentality severely limits individual investment motivation. Data from Hargreaves Lansdown shows that nearly two-thirds of Americans participate in the stock market, while less than a quarter of Britons do the same.

For the government to genuinely promote wealth creation, it must enhance public understanding of investing and inspire individuals to engage in it. Encouraging investment in UK businesses or, at the very least, highlighting the advantages of investing cash that would otherwise yield minimal returns into productive assets is essential. This not only helps to create wealth but also builds a capital foundation for future businesses, ultimately fortifying the job market.

The government should begin at the grassroots level by embedding financial literacy into secondary school curricula. However, education alone will not suffice. For the investment summit to be truly impactful and mark a transformative moment in the approach to investing and responsible risk-taking, Labour should utilize it as a platform to unveil significant proposals from the financial sector, such as establishing a British ISA, providing tax incentives for long-term pension investments, and eliminating stamp duty on UK shares. Implementing any or all of these measures would illustrate a commitment to cultivating an investment culture that embraces risk for the sake of attaining substantial long-term gains.

Matthew Beesley is the chief executive of Jupiter Asset Management