BSA comments on the Chancellor’s 2024 Budget

Robin Fieth, CEO of the Building Societies Association (BSA), comments on the announcements made in the Chancellor’s 2024 Budget.

Chancellor misses an opportunity to help first-time buyers by not removing unfair penalties and outdated rules.

Robin Fieth on First-Time Homebuyers:

“We are extremely disappointed that the Chancellor has not taken the opportunity today to announce any support for first-time homebuyers. 

“Small changes to the Help To Buy ISAs (HTB ISA) and Lifetime ISAs (LISA) schemes, to ensure they remain relevant and continue to provide the support they intended to provide when they were launched could have gone some way to help. 

“By failing to announce a reduction in the Lifetime ISA (LISA) withdrawal penalty, savers who open accounts in good faith will continue to be financially penalised if, for whatever reason, they cannot meet the specific requirements of the scheme. 

“The Chancellor has also missed the opportunity to review the price thresholds on LISAs and HTB ISAs to reflect higher house prices, and to equalised price thresholds on the two schemes.

“These small changes would have made the savings schemes fairer and more appropriate for today’s new homebuyers.”

Robin Fieth on the British Savings Bond:

“The BSA founded the annual UK Savings Week, and supports initiatives that encourage individuals to build a savings pot.

“The Government has today announced the British Savings Bond and the UK ISA towards its aim of encouraging a savings culture across the UK.

“We welcome that NS&I has stated its intention that the British Savings Bonds are to be priced mid-market in relation to similar products, in line with its requirement to balance the interests of savers, taxpayers and the broader financial services sector. 

“NS&I had a considerable impact on the market for a short time last Autumn, and it is important that consumers can be confident that products are available for a sustained period, and that the wider market won’t be destabilised.”

Kindly shared by Building Societies Association (BSA)