City business groups have welcomed suggestions the Treasury could reform rules around individual savings accounts (ISAs) in a bid to supercharge British business.
Chancellor Jeremy Hunt is reportedly pitching significant reforms to ISAs in a bid to help Brits invest their cash into UK firms and London-listed companies.
Investment bosses have met with Treasury officials to discuss how to simplify the market and reduce obstacles to investing in the stock market, the Financial Times reported.
An extra allowance specifically for investing in UK companies is even under consideration, the paper reported, as well as combining cash savings and stock market investments.
It’s thought Hunt will use his November Autumn Statement to outline the measures, in a sequel to his Mansion House speech, which announced a host of financial services reforms aimed at boosting UK economic growth and British firms.
Top City business groups welcomed the reported ISA reforms.
“Any reforms which help open the taps for personal investment into business are to be welcomed,” Alex Veitch, British Chamber of Commerce policy director, told City A.M.
James Watkins, head of policy at the London Chamber of Commerce and Industry, said: “These proposals, subject to seeing the detail, could be a beacon of hope to help firms who are facing liquidity issues during this cost-of-living crisis.
“In the 1980s, Margaret Thatcher promised a shareholder democracy. This vision, pushed by successive governments of all parties, was not fully realised.
“With Chancellor Jeremy Hunt announcing the Mansion House Compact to make it easier for pension funds to invest in British businesses, this latest step could at last help transform how Britain saves and invests in the future.”
The Treasury has been approached for comment on the reported reform efforts.