Treasury financial secretary Mark Hoban (pictured) has insisted that the Government will continue to support Isas and will work to build on their current success.
Speaking at the Tax Incentivised Savings Association annual conference in London today, Hoban said: “I want to be clear – Isas are a vital part of the Government’s savings strategy. They are here to stay and we will continue to support them.”
In September, Treasury select committee member Andy Love warned the Government may look to reduce tax incentives on Isas in October’s comprehensive spending review. Hoban refuted the claim at this year’s Conservative party conference.
Hoban told Tisa delegates that action needs to be taken to ensure Isas remain popular.
He said: “We have to ensure they remain popular, continue to give people a clear way to save and build on the brand they have developed over recent years.
“From my perspective this means making sure they are simple, transparent, competitive and flexible. We need to make sure Isas work for their customers, that we see faster transfers and greater clarity on the rates of interest that consumers are earning.
“People sometimes suggest they should be extended to include other things, like more niche investment products. But the risk then is that we would undermine Isas’ simplicity and then undermine people’s trust in them.”