Financial system, savings, pension funds

Independent financial adviser, Ryan Neil, discusses the Budget announcements focused on supporting British growth and individuals in securing their financial future.

Chancellor Jeremy Hunt, in the Spring Budget 2024, laid out plans for the financial system, focusing on savings and pension funds. He announced this to support British growth and individuals in securing their financial future.

Overall, Mr Hunt said, these measures underscore the government’s commitment to promoting long-term financial wellbeing for the UK’s citizens.

British saving bonds

The government has announced that National Savings & Investments (NS&I) will launch a product which will offer consumers a guaranteed interest rate, fixed for three years. This product will increase savings opportunities available to consumers in the UK and will be brought on sale in early April 2024.

UK Individual Savings Account (ISA)

Mr Hunt unveiled that the British ISA will come in the form of an extra £5,000 tax-efficient allowance to encourage retail investment in UK-listed companies. This is in addition to the current £20,000 that can be subscribed into an ISA. The Chancellor said those opening British ISAs would ‘benefit from the growth of the most promising UK businesses’.

NatWest retail offer

The government intends to deliver a sale of part of its NatWest shareholding to retail investors. A sale would take place this summer at the earliest, subject to supportive market conditions and achieving value for money for the taxpayer. Further information will be made available on gov.uk.

NatWest shareholding

The government intends to fully exit its shareholding in NatWest Group by 2025/26, subject to supportive market conditions and sales representing value for money.

Pensions lifetime provider

The government has confirmed that it remains committed to exploring a lifetime provider model for Defined Contribution (DC) pension schemes in the long term. The government will undertake continued analysis and engagement to ensure that this would improve outcomes for pension savers, and build on the foundations of reforms already underway, including the Value for Money Framework.

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THIS ARTICLE REPRESENTS THE VIEWS OF THE ADVISER AND DOES NOT CONSTITUTE AS FINANCIAL ADVICE.