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Press release
BSA comments on 2009 budget
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Contact: Rachel Wylie Date: 22 Apr 2009 |
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Commenting on the measures announced by the Chancellor in today’s Budget, Adrian Coles, Director-General of the Building Societies Association (BSA), said:
ISAs
“The increase in the annual investment limit for ISAs to £10,200, up to £5,100 of which can be saved in cash, is good news for savers, although it’s disappointing that the under 50s will not enjoy the benefit of this until April 2010. The recent Bank Rate cuts have meant savers have seen their income from savings interest drastically reduce, so today’s announcement will help give a greater incentive to save.
“We would encourage the Government to address some of the inconsistencies between cash and stocks and shares ISAs. The BSA would like to see transfers from stocks and shares ISAs to cash ISAs to be permitted. The current one-way-only transfer from cash to stocks and shares ISAs means consumers cannot rectify errors of bad judgment or advice and still retain their tax exemption.”
Encouraging mutuals
“We welcome the Government’s commitment to support alternative ownership and business models to provide financial services. The BSA looks forward to working with the Government on their forthcoming proposals to strengthen the mutual sector.”
Stamp Duty
“The extension of the Stamp Duty holiday for properties costing less than £175,000 could benefit a number of first-time buyers, but should not be expected to boost the housing market substantially.
“The BSA urges the Government to take this a step further by researching how the Stamp Duty system could be reformed to reduce the distortions from the current “slab” structure of the tax that results in the bunching of transactions at prices just below the thresholds for different rates.”
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CONTACT: Rachel Wylie
EMAIL: rachel.wylie@bsa.org.uk
The BSA Budget submission can be viewed here http://www.bsa.org.uk/policy/response/budget_submission.htm
The Building Societies Association (BSA) represents all 53 building societies in the United Kingdom. Building societies have total assets of £395 billion and, together with their subsidiaries, hold residential mortgages of £250 billion, more than 20% of the total outstanding in the UK. Societies hold over £235 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for about 37% of all cash ISA balances. Building societies employ over 51,500 full and part-time staff and operate through more than 2,000 branches.
Photographs of Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
