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Govt may look to tempt private investors with ‘growth bonds’

Savers could be offered tax breaks to transfer money held in bank accounts, building societies and investment funds into new Government “growth bonds” which would be invested in infrastructure projects.

According to The Independent, Chancellor George Osborne has asked Treasury officials to draw up the plans which could offer similar tax breaks to Isas.

The report suggests ministers are also looking at how the Government could underwrite the risk to small investors. They are considering proposals for the Government to underwrite a given percentage of any potential losses by the projects. This would mean that the Government took the first risk with the schemes, losing its money before any investors.

The report quotes a senior Government source as saying: “While a lot of families are struggling and have no disposable income, there are others who are quite cash rich but have nowhere secure to put their money where they can be guaranteed a decent return. Because interest rates are as low as they are, there is the potential to tap into this money and get it invested in infrastructure which will have a dramatic effect on Britain’s long-term growth.”

It comes after the Government has been repeatedly criticised by Labour for having no plan to boost economic growth and more than a year after the Chancellor delivered his “Budget for Growth” last March.

The Treasury was unavailable for comment.



CII member fined for being drunk and abusive at event

A member of the Chartered Insurance Institute and the Personal Finance Society has been fined for aggressive behaviour following “excessive alcohol consumption” at an event held by the professional bodies last year. A notice published in the latest issue of Financial Solutions, the PFS magazine, reveals the member came before the CII disciplinary hearing in […]


Voluntary ETV code rules out cash incentives

Employers will be banned from offering cash incentives to members of company pension schemes in return for giving up valuable benefits, under a new code of practice launched today. The voluntary code, published by the Industry Working Group on Incentive Exercises for Pensions, says no cash incentives should be offered that are connected to a […]

Only 15 per cent happy with their pension saving, says Aegon

Just 15 per cent of people are confident they will have saved enough by the time they reach retirement despite two thirds acknowledging it is their responsibility, according to an international survey conducted by Aegon. The firm’s first ever Retirement Readiness Survey also found what the report calls the “retirement cliff” is giving way to […]


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. David Cowell, Myddleton Croft 6th June 2012 at 11:05 am

    After emasculating pensions they now think that they can con even more cash out of the unsuspecting public. Breathtaking.

  2. Gillian Cardy 6th June 2012 at 4:59 pm

    Can I predict a train crash??
    Who will explain that higher return = higher risk?
    Why not just make NS&I a bit more attractive to get the cash rolling in??!!
    Because that’s got a guarantee and the new plan won’t …
    Oh – and let’s not forget that private finance / project finance were part of Arch Cru portfolios before we spend too long describing this as a “low risk” alternative for dischuffed savers …

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