The Government are committed to supporting people to save and invest, and we want to build a better investment culture. Currently, 85% of people with savings income do not pay tax on it. As we announced at the Budget from next month, we will expand the help to save scheme to all universal credit claimants in work.
The nation’s favourite way to save is through premium bonds. Does the Minister think that they are good for the country and a valuable way of encouraging saving? For everyone who has them, they are quite exciting every month.
I think that premium bonds do provide excitement, not least in my parents’ household, where they are very popular. They are already well promoted and popular, and we have seen annual investments in premium bonds increase by more than 50% since March 2019. The funds raised through them go towards supporting vital public services.
I warmly welcome the Government’s commitment to extend the help to save scheme, which has been running for seven years. Martin Lewis describes it as
“a very clever scheme and one that will work for many people.”
May I urge the Minister to look at what needs to be done to raise awareness of it, because the actual uptake is very low, given that the Government have been giving £1,200 over four years? It is critical that the right investment in promoting it happens, because it is such a brilliant scheme.
I could not agree with one of my predecessors more. The right hon. Gentleman is absolutely correct. It is a great scheme and now that we are expanding it, we will take that opportunity to promote it better.
We all know how important it is to encourage savings, because so many people are a paycheque away from poverty, but there has been a lot of discussion about lazy capital in cash-only ISAs, for example, and other savings accounts. I know there is a drive by Government to see greater investment. Would the Minister like to expand on the Government’s thoughts on that? In particular, can she make any comments about the security of the cash ISA?
Cash savings provide a vital source of savings for a rainy day, and we recognise that. Equally, we want to build a better investment culture in our society, so that it is not just the 8% of people who can afford financial advice who can have the opportunity of better rewards by investing in British companies and others in our economy.
On that point, it has been widely reported that the Chancellor is planning to slash the amount of cash that savers can save in ISAs from £20,000 to £4,000 a year. Will the Chancellor rule out this punitive measure, which will see savings drop and push even more people into income tax?
We are committed to promoting savings and investment, as I said in an earlier answer. One measure we are looking at is the Financial Conduct Authority’s review of the advice guidance boundary. As I said in a previous answer, I do not want it just to be the 8% of people who can afford financial advice who reap the rewards of investing in our economy. We keep all taxes under review.
The City of London has been a leader of innovation in the world of finance and savings for a few hundred years now, and it has been successful because it has always seized opportunities and innovation when presented. In that spirit, we are pleased that the Chancellor in her Mansion House speech embraced the concept of securities tokenisation, but we now find that the catalyst for this innovation in the UK—a pilot for the digital gilt instrument known as DIGIT—has found itself in a two-year black hole. Innovation is not something that can hang around for two years, so will the Minister give assurances that she will do everything she can to deliver DIGIT as soon as possible?
18. What steps she has taken to help increase economic growth in the east of England.
NICs Increase: Impact on Economic Growth
Economic Growth: New Transport Infrastructure
Regional Growth: England
Investment: Newcastle Upon Tyne East and Wallsend
Affordable Housing: Supply
Public Spending: Value for Money
Government Borrowing
Economic Growth: Scotland
Taxation: Impact on Working People
Autumn Budget 2024: Business Confidence
Topical Questions
20 of 187 shown
The Chancellor of the Exchequer (Rachel Reeves)
LabourLeeds West and Pudsey
Economic growth is the No. 1 mission of this Government. Putting more money in people’s pockets and ensuring growth is felt in all regions of the UK is a core part of our mission. The Government have a clear focus on investing in the infrastructure needed to support cities and regions to grow and thrive. In January, the Government announced a partnership between East Midlands airport and Prologis to build a new advanced manufacturing and logistics park, unlocking up to £1 billion of private investment and 2,000 jobs at the airport site.