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.