Savers would be handed an extra £5,000 Isa allowance if they put money into a “Great British Isa” under plans to boost the economy.
Jeremy Hunt is actively considering proposals to introduce an additional £5,000 allowance for savers who want to invest in UK-listed companies, The Telegraph understands.
Sources familiar with Mr Hunt’s thinking also said he is considering introducing a new stocks Isa that can only be invested in UK companies’ shares.
Proposals for a new UK-only Isa would incentivise tax-free investment in businesses listed on the London Stock Exchange, providing a much-needed capital boost to the main UK stock market, supporters of the proposals have said.
It follows a letter to The Times calling for such reforms, signed by City figures including former pensions minister Baroness Altmann and the bosses of high-profile investment groups such as Panmure Gordon and Shore Capital.
The letter said: “A major oddity of the present Isa regime is that it offers the same incentives for savers to invest in overseas as domestic businesses.”
Creating a Great British Isa would “drive interest from a wider pool of investors and create a multiplier effect, reviving interest in raising equity in the UK, driving economic growth, spreading prosperity and boosting tax revenues”, it added.
The letter comes a week before the Chancellor’s Autumn Statement, in which Mr Hunt is expected to maintain current high levels of taxation despite widespread calls to ease the nation’s burden.
