BSA comments on emergency Budget measures

BSA comments on emergency Budget measures

BSA comments on emergency Budget measures

Commenting on the measures announced by the Chancellor in the emergency Budget today, Brian Morris, Head of Savings Policy at the Building Societies Association (BSA), said:

ISAs
“The Chancellor’s commitment to index link the annual ISA subscription limit from 2011/12 is good news for savers. We would like the Chancellor to go a step further and confirm the Government’s commitment to ISAs for the longer term.”

NS&I
“We welcome the commitment to a zero funding target in 2010/11 for NS&I. This should help to minimise the potential for competitive distortions in the retail savings market.”

Banking Levy
“The Chancellor’s announcement of a banking levy was not unexpected. The BSA is pleased that the levy is not a tax on retail deposits and welcomes that the Chancellor has exempted smaller deposit takers from the levy.”

SMI
“The BSA welcomes the Government’s continued commitment to providing a safety net for those vulnerable homeowners facing financial difficulty. However, we note that the changes to SMI will mean less support for those paying an interest rate above the Bank of England average. Borrowers who think they may be affected should contact their lender as soon as possible to discuss any further help that may be available.”

Stamp Duty
“The BSA believes a further review on stamp duty for first time buyers should be the first step in a thorough review of how the system could be reformed to reduce distortions to the housing market.”

~Ends~

Contact
Rachel Le Brocq – rachel.lebrocq@bsa.org.uk / 020 7520 5905
Fiona Cornes – fiona.cornes@bsa.org.uk / 020 7520 5926

Notes to Editor:
1. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 50 UK building societies. Mutual lenders and deposit takers have total assets of over £370 billion and, together with their subsidiaries, hold residential mortgages of over £235 billion, 19% of the total outstanding in the UK. They hold almost £250 billion of retail deposits, accounting for just under 22% of all such deposits in the UK. Mutual deposit takers account for about 36% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.

2. Photographs of Brian Morris are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk

3. A copy of the BSA’s Emergency Budget submission to the Chancellor of the Exchequer can be found by following this link http://www.bsa.org.uk/policy/response/emergency_budge_submission