Nov 16 2006
Financial experts have welcomed individual savings account (Isa) reform proposals outlined by the government ahead of its pre-budget report, but calls are being made for further details to be made clear.
Government minister Ed Balls has announced that the Isa scheme will be extended indefinitely, marking a sustained commitment to the scheme which may come as good news to Isa savers, including those investing money on behalf of their children.
It is thought that the annual limit on cash Isas will stay at the current level of £3,000, whilst the maximum amount permitted to be invested in an equity Isa may be increased from the current £7,000.
Following these announcements, calls are being made for specific plans to be detailed in the upcoming pre-budget report, in order to remove all uncertainty over the future of Isas.
"Any incentive to encourage people to save can only be welcomed," comments Anne Young of Scottish Widows.
"However there are still improvements and clarifications which we will hope to see in the pre-budget report, including when these proposals will be introduced."
Treasury figures show that to date, some £215 billion has been invested in Isas in the UK.
Over 16 million people presently hold an Isa account that was launched in 1999.
