ABI comments on Budget’s savings measures
The effect of yesterday's Budget on savings has been called "meagre" by the Association of British Insurers (ABI).
Chancellor Gordon Brown announced an increase in Individual Savings Account cash limits, a reduction in base rate income tax and the scrapping of Pensions Term Assurance (PTA).
Stephen Haddrill, director general of the ABI, commented that he was disappointed that PTA has been cut, adding that it may see families suffer without protection.
Similarly, while Mr Haddrill welcomed the rise in Isa limits, he warned the increase is not big enough and needs to be built upon in the future.
The 2p income tax drop was praised by the official for providing people with more disposable money, although he stated that there is still work to be done to encourage saving.
"The Government must now work with the FSA [Financial Services Authority] to make saving as easy as spending," Mr Haddrill said.
Gordon Brown yesterday delivered his 11th and final Budget. He is widely tipped to take over as prime minister when Tony Blair steps down from the position.
© Adfero LtdYou can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.