Spending appears high on the agenda for the Chancellor but encouraging savers and retail investors has been avoi-ded, other than the pension announcements.
Many of the measures that should be put in place to encourage the retail investor were announced before the Budget. By doing this, the Chancellor avoided bringing negative news into a very political Budget speech.
The only positive was con- centrated on what is traditionally and will continue to be a specialist market – VCTs.
The markets have been hazardous, to say the least, discouraging investors from making decisions while the bear market has compounded the difficulties that those raising capital for new VCTs have faced. We are well into the first year of the recovery and seeing muted signs of positive investor sentiment so the changes to the VCT tax incentives should kickstart a lacklustre sector.
I am disappointed in the lack of incentives and encouragement for retail investment and the removal of the tax credit and reducing the Isa allowance, indirectly increasing revenue for the Government.
The Government's mantra is to place responsibility on the individual to make provision for their future but they are not only discouraging this,they are also essentially putting off what will be a huge issue in future years.