Neglect of savings sector may mean more personal loans

A savings expert has warned Westminster's policy-makers that they need to reassess their sense of priorities relating to the savings industry, as otherwise more personal loans could be needed as a result.

Responding to the UK Government's proposed overhaul of the gambling laws, Jason Hollands, director, head of communication at F&C Asset Management, said it was "ironic" that the proposals should be presented to parliament just days after the Turner Report highlighted the looming pension crisis facing the UK.

"This strikes me as sending a very strange signal about the Government's sense of priorities and where the diligent saver sits compared to the frivolous punter," he said.

"The abolition of ISA tax credits on equity dividends, the planned reduction of the ISA allowance itself and the continuing nuisance of Stamp Duty on share dealing all sit uncomfortably alongside the Government's previous decision to abolish Betting Duty.

"And now these proposals."

Mr Hollands called on the government to drop the planned reduction of the ISA allowance from £7,000 to £5,000 as a "first step" to restore public confidence in these long-term savings schemes.