“While Nationwide welcomes the increase to ISA limits announced in the 2007 Budget which become effective next month, we are disappointed that the Chancellor did not go further in his first Budget to encourage and promote savings through ISAs”
This is the view of is Matthew Carter, the Society’s mortgage and savings director, in his reaction to today’s British budget delivered by the Chancellor of the Exchequer earlier today.
“We would like to see ISAs made more flexible and to see the Chancellor equalise cash and equity subscription limits, while also index-linking them to inflation. Additionally, we would have liked to have seen the Chancellor introduce a withdrawal buffer that allows savers to make withdrawals and replenish their ISA within the same tax year, as this would particularly help people on lower incomes.
“If the Chancellor had done this, we believe the Government would be encouraging people to make full use of their ISA allowance and embrace the tax-efficient benefits they bring. We hope that Alistair Darling will examine the ISA system further over the next year.”