Research by Interactive Investor has shown that 91% of people think that ISA tax breaks should be improved and limits increased. The report shows that the savings ratio has steadily reduced over the past 12 years, from 11.6%, to 5.6% in 2004.
In 1992, up to £12,000 could be invested tax free in Pep's and Tessa's. The ISA limit is only £7,000 per annum, with restricted tax benefits.
Our view
Ashley Clark, director of , said: "Since Labour came to power, they have continually chipped away at tax incentives which encourage people to save. We started off with Tessa's and Peps, which were Tory contracts, and had them replaced with a New Labour Isa badge.
Whoever is in the Government thinktank, encouraging the general public to bridge the savings gap, is entirely on the wrong planet."