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Industry warns Government initiatives are failing savers

There is continuing concern the Government’s economic and fiscal polices are deterring people from saving, according to the ABI’s latest survey of senior executives.
The quarterly ABI/Populus survey of the insurance industry found 37 per cent of executives believed Government policy initiatives were having a negative effect on the personal savings market and only 8 per cent believe they are having a positive effect.
The net score is -29 per cent, 17 per cent lower than July’s findings. Since then the industry has experienced Government U-turns on Asps and pension term assurance.
But the survey also found the industry believed the climate for savings has improved over the last six months, with 48 per cent saying the savings environment has improved over the last year, up from 42 per cent in the last survey.
ABI director general Stephen Haddrill says: “Reforms to the pensions and savings system, including the recent ISA changes, present good opportunities for savers in 2007. But at the same time, other policies are seen to be damaging levels of long-term saving. We need to see a consistent commitment to boost saving across all policy areas.”

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