Budget 2007: A Saver’s Perspective
March 23rd, 2007
While the real merits of the budget will be discussed for some time, we feel that for Britain’s savers it was a positive move.
The small increase in ISAs is nothing dramatic and we will petition the Treasury to look to raise the amount each year, to encourage additional saving and investment. The real benefit, as we see it, is that ISAs have been simplified.
From April 2008 we will see an increase in the cash allowance to £3,600, which will be 50% of the new £7,200 investment allowance, investors can switch from cash to equities as their confidence increases, Child Trust Funds can be moved into an ISA when the child reaches the age of 18 and the government has committed to keeping ISAs as a long term investment.
These moves are positive and should encourage people to start saving or to increase their contributions, which has got to be an encouraging change. If only we could say the same about the rest of the budget!
Author: Philippa Gee
March 23rd, 2007
Category: Investments.
