Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Canadian Cannabis Stocks CRASH as Canopy Growth Hits a Dead End - 14th Dec 19
Retail Sector Isn’t Dead, and These 6% Dividend Paying Stocks Prove It - 14th Dec 19
Top 5 Ways to Add Value to Your Home - 14th Dec 19
Beware Gold Stocks Downside - 13th Dec 19
Fed Says No Interest Rate Hikes In 2020. What About Gold? - 13th Dec 19
The ABC’s of Fiat Money - 13th Dec 19
Why Jo Swinson and the Lib Dems LOST Seats General Election 2019 - Sheffiled Hallam Result - 13th Dec 19
UK General Election 2019 BBC Exit Poll Forecast Accuracy Analysis - 12th Dec 19
Technical Analysis Update: Tadawul All Share Index (TASI) - Saudi Arabia ETF (KSA) - 12th Dec 19
Silver Miners Pinpoint the Precious Metals’ Outlook - 12th Dec 19
How Google Has Become the Worlds Biggest Travel Company - 12th Dec 19
UK Election Seats Forecasts - Tories 326, Labour 241, SNP 40, Lib Dems 17 - 12th Dec 19
UK General Election 2019 Final Seats Per Party Forecast - 12th Dec 19
What UK CPI, RPI INFLATION Forecasts for General Election Result 2019 - 11th Dec 19
Gold ETF Holdings Surge… But Do They Actually Hold Gold? - 11th Dec 19
Gold, Silver Reversals, Lower Prices and Our Precious Profits - 11th Dec 19
Opinion Pollsters, YouGov MRP General Election 2019 Result Seats Forecast - 11th Dec 19
UK General Election Tory and Labour Marginal Seats Analysis, Implied Forecast 2019 - 11th Dec 19
UK General Election 2019 - Tory Seats Forecast Based on GDP Growth - 11th Dec 19
YouGov's MRP Poll Final Tory Seats Forecast Revised Down From 359 to 338, Possibly Lower? - 10th Dec 19
What UK Economy (Average Earnings) Predicts for General Election Results 2019 - 10th Dec 19
Labour vs Tory Manifesto's UK General Election Parliamentary Seats Forecast 2019 - 10th Dec 19
Lumber is about to rally and how to play it with this ETF - 10th Dec 19
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19

Market Oracle FREE Newsletter

UK General Election Forecast 2019

Calls on the Chancellor to Improve ISA's, Children's Savings Accounts and Affordable Housing

Personal_Finance / Savings Accounts Oct 06, 2007 - 01:43 PM GMT

By: Nationwide

Personal_Finance Nationwide Building Society, ahead of the Pre-Budget Report which is expected next week, has called on the Chancellor to make changes and improve the ISA system, children’s savings and housing affordability. The Society is a keen supporter of government initiatives that encourage the savings habit and enable people to get onto the property ladder and hopes Alistair Darling will take the practical steps needed to ensure the Government’s stated aims in these areas are met.

Nationwide has written to the Chancellor and recommended the following:

Individual savings accounts (ISAs)

Nationwide welcomes the Government’s commitment to encouraging and promoting saving through ISAs but believes the system could be simplified and made more flexible. The Society calls for:

  • the ISA system to be further amended to allow equity ISA holders the option to switch all or part of their investment to cash at any point during the life of the ISA;
  • cash and equity ISA subscription limits to be equalised;
  • ISA subscription limits to be regularly reviewed and linked to inflation to ensure their true value is maintained.

Children’s savings

Nationwide thinks the Government can do more to encourage parents, friends and family to save for children whether they qualify for a Child Trust Fund (CTF) or not. Currently, parents whose children do not have a CTF are penalised through taxation if they want to save as much as those that do and 60% of Child Trust Funds haven’t seen any additional contributions. The Society has called for:

  • the tax exemption thresholds for interest earned on savings for children by parents to be increased as Nationwide estimates that Ł60 million is paid in tax by parents when saving for their children 1 ;
  • a further Government contribution of Ł250 when a CTF child reaches the age of 11;
  • a coordinated Government information campaign, involving the Department for Work and Pensions, the Department for Children, Schools and Families and the Financial Services Authority, so that parents are reminded to invest their vouchers and to encourage additional contributions of even small amounts.

Affordability and Housing

Nationwide welcomes the aims of the Housing Green Paper, and the commitment from the Government to address both the chronic shortage and affordability of housing in the UK. The Society would like to see the Government work with lenders to tackle the shortage of housing in the UK and address the affordability problem and calls for:

  • the Government to continue working with the industry to review and develop shared equity schemes that make a real difference to would-be home owners;
  • further assurances from the Government that funding for the Low Cost Home Ownership programmes will be forthcoming; a reform of stamp duty to reduce its burden on first-time buyers.

Graham Beale, Nationwide’s chief executive, says: “Alistair Darling has an opportunity to introduce changes that can make a real difference to people’s wealth in his first Pre-Budget Report as Chancellor. The ISA system has proved to be a success with over 16 million 2 accounts in operation, but more can be done to encourage consumers to use their ISA allowance and embrace the tax-efficient benefits they bring. To build a savings habit in younger people, Nationwide, which is one of only a few providers to offer both cash and equity Child Trust Funds, would like to see Alistair Darling encourage more parents to contribute to the funds. The Government also has a chance to help as many people as possible to take their first step onto the housing ladder, and this is a step that would be well worth taking.”


1 Calculated in 2006: assuming an interest rate of 4.95%, if a parent/guardian pays Ł1,200 into a child’s savings account and there are no withdrawals, by year two the parent will become liable for income tax on those savings.

2 Over 16m customers hold ISAs; Mintel Report June 2007

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules