FINANCIAL SERVICES PUBLISH THEIR OWN BUDGET FOR SAVERS
CHANCELLOR Gordon Brown has not used the word “[i]saver[/i]” in a Budget speech since 2001, so six major financial organisations are today publishing their own Budget for Savers.
The Budget for Savers Campaign calls on the Chancellor to give urgent attention to the 13 million people the Government estimates are not saving, or not saving enough. The Government has taken some welcome steps towards addressing this problem, but more needs to be done. The campaigners have produced a document containing measures which would help the Chancellor to encourage saving in the short and long term.
The publication, [b]A Budget for Savers[/b], calls on the Chancellor to address four main issues:
[list][*]Making short-term savers long-term savers;
[*]Making taxes clear, simple and fair;
[*]Enabling pensions and Sandler products; and
[*]Developing financial literacy.
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The Campaign addresses each of these issues with a series of measures. These range in cost to the Exchequer from zero to several billion pounds, with most of the solutions being small, precisely targeted measures.
Paul Smee, Director General of the Association of Independent Financial Advisers said:
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“Advice and saving are linked; access to advice encourages saving. Increasing access to advice could be achieved by encouraging employers to give their employees access to a financial adviser in the workplace. We urge the Government to consider introducing financial incentives to help persuade employers to introduce this benefit for their employees.”
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Daniel Godfrey, Director General of the Association of Investment Trust Companies said:
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“Many people are borrowing too much and failing to provide sufficiently for their future, so it’s an appropriate time to call for a Budget for Savers. We need to see more incentives for people to save. The Child Trust Fund needs to be followed through with equally innovative incentives for today’s consumers, at a time when we need to save more than ever before. The Government should also take advantage of the enormous amount of support for personal finance education by integrating it into product developments such as the Child Trust Fund.”
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Angela Knight, Chief Executive of the Association of Private Client Investment Managers and Stockbrokers, said:
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“The most striking thing about the measures in [b]A Budget for Savers[/b] is that so many of them will cost the Exchequer little or nothing. Here are some simple, affordable measures the Government can take to encourage people to save. However that still leaves the Government with the biggest question – what to do about stamp duty now we are one of the last countries to tax investors in this way.”
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Adrian Coles, Director General of the Building Societies Association said:
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“We support the Government’s aim to get more people saving and hope the Budget for Savers adds constructively to this debate. ISAs have really taken off, and we are seeing more and more people saving into ISAs because they know they are tax free. Without this incentive many people will simply stop saving. The Chancellor takes the savings gap seriously and we know he wants more people to put their cash away. Therefore it seems perverse to go ahead with planned cuts on what has been a very popular savings scheme, especially with those on middle and low incomes.”
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Tony Vine-Lott, Director General of the PEP and ISA Managers Association said:
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“This Budget provides the Chancellor with a major opportunity to encourage and revitalise UK savings. The ISA has proved the most popular savings vehicle this Government has introduced and now forms a key part of day-to-day and retirement saving for many millions of people. To ensure the continued success of the ISA scheme we urge the Chancellor to drop his plans to abolish the ISA dividend tax credit and the reduction in ISA subscription limits.”
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Michael Savory, Chairman of ProShare said:
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“We are pleased that the Government is addressing the area of financial literacy, but there is still a long way to go to ensure that every individual has the opportunity to develop financial skills throughout their lifetime. Many challenges lie ahead in overcoming barriers such as social exclusion, geographic limitations, public perception, teacher training and communication.”
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[i]Notes to editors
[/i][123list][*]The Budget for Savers Campaign is a new coalition of trade associations, working together to encourage the Chancellor of the Exchequer to address the UK’s £27 billion savings gap in his Budget address.
[*]Its members are: the Association of Independent Financial Advisers (AIFA); the Association of Investment Trust Companies (AITC); the Association of Private Client Investment Managers and Stockbrokers (APCIMS); the Building Societies Association (BSA); the PEP and ISA Managers Association (PIMA); and ProShare.
[*]A copy of the Campaign’s document, [b]A Budget for Savers[/b], is included in the PDF download version of this release [i](see link below)[/i]
[*]You can find this press release plus more information at www.budgetforsavers.co.uk.
[i]For further information contact:
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Tracey Mullins, Director of Public Affairs, AIFA – 020 7628 1287
Annabel Brodie-Smith, Communications Director, AITC – 020 7282 5580
Brian Mairs, Head of Information, APCIMS – 020 7247 7080
Rachel Blackmore, External Affairs Manager, BSA – 020 7440 2218
Peter Shipp, Technical Director, PIMA – 01642 207200
Sonia Rehill, PR Manager, ProShare – 020 7220 1753