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Labour MP wants Isa limit extended

Prominent Labour backbencher Jim Cousins is urging the Treasury to continue the £7,000 limit for maxi Isas for athird year.

Cousins is writing to Economic Secretary Melanie Johnson at the Treasury to ask if she has plans to extend the limit for another year.

The decision by Chancellor Brown in his Budget speech in March allows people to invest a maximum of £3,000 in cash, £1,000 in life insurance and the balance in equities.

At the time, the move was met with applause by the industry who believed investors would continue to be encouraged to buy Isas.

In their first year, Isa sales reached a total of £28bn.

Chase de Vere investment marketing manager Ian Millward says: “We would welcome that measure whole-heartedly. Keeping the limit at the same level would encourage investors to continue to invest in them.”

A Treasury spokesman says: “These would be decisions to be taken in a future round of budget talks. We would not speculate on any decisions to be taken months down the road.”

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