Tue, 15 Jul 2025

Tue, 15 Jul 2025 Stop being negative about savers buying shares, Reeves says

Chancellor tells the financial industry to change the narrative around consumer investment to encourage growth.

* Chancellor Rachel Reeves has called on the financial industry to change its "negative" narrative around investing in stocks and shares.
* She wants to encourage savers to invest £300bn in cash Individual Savings Accounts (Isas) in UK companies.
* The government is working with the Financial Conduct Authority to provide support for would-be investors, including a new type of targeted support.
* Reeves has dropped plans to cut the tax-free limit on Isas after a backlash from lenders.
* The government is under pressure to boost growth after figures showed the UK economy shrunk in May and April.
* Some Labour MPs have suggested a wealth tax could raise £24bn per year, but Sir William Russell says this is unlikely.
* Reeves has promised to continue considering changes to Isas and reforming regulation to encourage growth.
* The Bank of England governor, Andrew Bailey, believes there's no trade-off between stability and growth, but the economy needs modernised regulation.
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