No, a British ISA won’t help UK firms – but pension funds might

Jeremy Hunt’s savings idea is a gimmick but pension funds offer more fertile ground for injecting cash into UK plc, says James Moore

London has struggled to attract new listings in the last year (PA Wire)

In an otherwise lacklustre Budget for business, the chancellor had two announcements to address Britain’s struggling stock market and the desperate lack of investment capital.

First, and most eye-catching, was the launch of a “British ISA”: an extra £5,000 tax-free saving allowance – on top of the usual £20,000 – for savings invested in UK shares.

Broker AJ Bell immediately put its finger on the problem: you can already choose to invest in UK stocks through the ISA existing allowance, and many savers do. However, only a tiny minority max out that allowance.