The boss of Britain’s biggest building society has urged the Chancellor to keep a ‘full range’ of savings products available amid speculation over changes to individual savings account (Isa) rules.
Nationwide chief executive Debbie Crosbie made the comments as she was asked about reports that Rachel Reeves could reduce the annual limit on cash Isa deposits from £20,000 to £10,000 in the Budget.
The idea is that more savers’ money could instead be put to work investing in UK shares to support the economy – and delivering greater returns than cash.
But a number of building societies have raised concerns about the proposals, since they rely on cash savings to fund mortgage lending.
Opponents of the change also argue that many savers prefer the safety of cash to putting their money into more risky investments.
Crosbie, speaking as Nationwide published half-year results, would not be drawn directly on her views on the idea of cutting the cash limit.
But she said: ‘We think savings are very important. In particular, having the right set of products available to customers is important.
Debbie Crosbie said she had ‘never seen the level of speculation’ about the Budget
‘We just hope that the full range of products remains available – I’m sure it will but we’ll wait and see what the outcome of the Budget delivers.
‘Savings is really important – cash savings and actually investment. Having the right decisions made for individuals is what’s important. There’s a range of options available so as long as that remains the case we’ll be supportive.’
Commenting more widely on the Budget, she said she had ‘never seen the level of speculation’ about what would be in it.
Asked what she wanted the Chancellor to do next week, she said: ‘We want the UK economy to grow, we want productivity to increase, and we want people to feel like they’ve got an optimistic future.’
Crosbie would not be drawn on reports on higher taxes for banks, saying: ‘We’re not sure what’s going to happen… we plan for all scenarios and we’re ready to respond accordingly. We’ll be ready to support our customers whatever happens.’
Other lenders have warned that higher bank taxes could damage growth by leaving them with less capital to support borrowers and boost the wider economy.
Crosbie gave a positive response when asked about reports that stamp duty could be abolished, saying she was in favour of ‘anything that supports growth in the UK mortgage market’.
It came as Nationwide reported a 14 per cent fall in profits for the six months to the end of September to £486million.
That was after taking into account £400million in ‘fairer share’ payments to millions of eligible customers – who, as members of the building society, are given a share of its profits.
On an underlying basis, profits grew 2 per cent to £977million.
Net mortgage lending fell to £4.7billion compared to £6.3billion in the same period last year.
That was blamed on the end of a stamp duty holiday in the spring of this year that resulted in borrowers bringing forward house purchase completions to March resulting in a drop-off later.
The results come as Nationwide continues to integrate the operations of smaller rival Virgin Money, which it took over last year for £2.9billion.
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