It's a savers' budget," says Andrew Lansley – our South Cambridgeshire MP as he welcomes the dramatic new help for savers announced in today's Budget.
"It will help those people who want to save for a home, for their family or for their retirement," he said.
The particular benefits are:
- Merging the cash ISA and stocks and shares ISA into a single New ISA from 1st July with an annual limit of £15,000.
This will make saving simpler and more flexible. 654,000 ISA holders in the
East of England could benefit from the New ISA.
- Abolishing the 10p starting rate of tax for savings income.
The 10p band will become a zero rate band and will be extended to the first
£5,000 of savings income. This will benefit 1.5 million low income savers.
- The new pensioner bond coming in next January will offer a return better than anything pensioners can get now – up to 4% (with a limit of £10,000).
This will help pensioners who have worked hard and saved.
The biggest reform of pensions taxation in a century – which will mean:
- No one will have to buy an annuity if they don’t want to.
- There will be no punitive 55% tax rate if you try and take more than your tax free lump sum.
- Everyone who retires on these schemes will now be offered free, impartial, face-to-face advice.
Andrew added:
"Savers have had a hard time in recent years and it’s time Britain helped them out. These radical changes will help boost economic security for people who work hard and save hard – and show the Conservative Party is on your side.
“Cambridgeshire is also seeing the benefits of the recovery in terms of new jobs, new investment and new support for our infrastructure – I'm delighted this Budget will help to sustain all of these.
"The doubling of the tax allowance for investment to encourage businesses to export more of their products and services is also very good news for the many succesful local companies.
“Crucially, the Budget commits its support for the Cambridge City Deal, including funding for the ambitious gain share to support Cambridge’s infrastructure and transport, which could be worth up to £500m over the next 15 to 20 years.
"We also stand to gain from the extra funding for the sciences, which is excellent news.
“I know many of my constituents who are small savers, or pensioners with savings, will also be very pleased about the new measures to support savings – it gives people the sense of security for the future which is so vital.”
BBC news links:
- 'Pensioner bonds' to be launched.
- ISA savings accounts set for revamp.
- UK firms get tax relief and export boost.
- Other Budget news.
You can contact Andrew at his constituency office
Andrew Lansley CBE MP
153 St Neots Road
Hardwick
Cambridge
CB23 7QJ
T 01954 212 707
E lansleya@parliament.uk
W Andrew Lansley
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