Scottish Widows: Possible increase in ISA allowances

Commenting on Gordon Brown's announcement on the possible increase in ISA allowances, Gordon Greig, head of savings and investments at Scottish Widows said: "We would definitely welcome an increase in individuals tax free savings allowance. There are currently not enough people taking advantage of this tax free allowance; as research from the third annual Scottish Widows Savings and Investments Report reveals that despite the vast majority (72%) of people wanting to start saving for the future, disappointingly, three out of five (60%) people do not intend to take advantage of the tax breaks that currently exist. An increase of the allowance would further incentivise people to take advantage of ISAs.

"Over half (56%) of those who already have a Cash or Equity ISA stated that the reason they save into an ISA is because of the relative transparency -you can see exactly what return you have made on your hard earned cash . Everyone who is able to put some money away should be taking advantage of their ISA allowance in 2009 - it's tax-free, simple, and an ideal place to start saving for the future, even if you haven't managed this in the past."