Nov 21 2008
The Association of British Insurers (ABI) has called for a rise in the limits of individual savings accounts (Isas).
In a message to the government prior to its pre-Budget report, it said that the boundary should be increased from its current level of £7,200 to at least £10,800 per year in a bid to encourage saving among UK consumers.
It said that the move would give individuals, including those saving for children, an extra incentive to benefit from tax-efficient savings and would help to boost the stock market.
"Savings are vitally important to the UK economy and, while we support the need to stimulate spending and growth, saving must not be ignored as a means of lifting and keeping the economy out of recession," stated ABI director-general Stephen Haddrill.
He went on to describe saving as the "lifeblood" of the financial services industry.
Meanwhile, figures produced last month by HM Revenue and Customs and the Department for Work and Pensions revealed that the amount of money deposited in Isas has risen seven-fold since 2000.
