This Budget is generally good news for the large majority of families, with the tax cuts, increases in childrens credits. This should realise a flow of funds that have the potential to be invested in long term savings, particularly pensions which is good news in the run up to stakeholder. The extension of the Isa limit is good news for product providers and consumers, which helps planning and gives consumers assurity for their savings.
The removal of the MFR must be treated with caution until the full implications are known, in particular how the Government intends to legislate to protect expectation of policyholders. However, the removal of MFR on gilts is inevitable in view of the Governments position on debt repayments.
We welcome the tax credits for companies investing in environmental initiatives which should assist the number of socially responsible funds emerging.
The Treasurys confidence in continued growth should create an environment for long term savings and equity environment.