I would like to welcome the dramatic new help announced in the Budget for savers.
The Budget will help those people who want to save for a home, save for their family or save for their retirement by:
- Merging the cash ISA and stocks & shares ISA into a single New ISA with an annual limit of £15,000 – this will make saving simpler and more flexible. 654,000 ISA holders in the East of England could benefit from the New ISA.
- Abolishing the 10p starting rate of tax for savings income – the 10p band will become a zero rate band and will be extended to the first £5,000 of savings income. This will benefit 1.5 million low income savers.
- Creating a new pensioner bond that will offer a return that is better than anything pensioners can get now – helping pensioners who have worked hard and saved.
- The biggest reform of pensions taxation in a century. This will mean:
- No one will have to buy an annuity if they don’t want to.
- There will be no punitive 55 per cent tax rate if you try and take more than your tax free lump sum.
- Everyone who retires on these schemes will now be offered free, impartial, face-to-face advice.
Savers have had a hard time in recent years and it’s time Britain helped them out. That’s why whether you want to save for a home, save for your family or save for your retirement this is a Budget for you.
These radical changes will help boost economic security for people who work hard and save hard – and show that the Conservative Party is on your side.