Minister says save more, spend less

 
Tim Wallace
Follow Tim
THE ECONOMY needs more thrifty savers and fewer debt-fuelled splurges, Treasury minister Andrea Leadsom said yesterday.

She called for more competition in the banking market, as well as a new drive to promote financial education.

Banks and building societies “help people fulfil their ambitions – whether that’s buying your first house, saving up for a holiday or investing in your children and grandchildren’s education”, she told the Building Societies Association’s (BSA) annual conference. “I stress the phrase ‘saving up’. We want to incentivise a savings society, where people’s first instinct is to save up for things they want, rather than putting them on the never-never.”

Leadsom pointed to the increased ISA limit which brought more savings out of income tax, the increased range of ISA-eligible investments and the abolition of the 10 per cent tax on savings as evi­dence that she is encouraging saving.

Meanwhile, the BSA called for the government to encourage the establishment of new mutuals, to match the increase in new banks.