UK stockbrokers and financial advisory groups saw a rise in share prices today when UK Chancellor George Osborne announced changes to the saving rules.
In today’s Budget, Osborne announced increases to the ISA savings allowance to £20,000 and unveiled new accounts designed to encourage long term saving for pensions or house purchase for the under 40s – called ‘Lifetime ISAs’.
Hargreaves Lansdown saw its share price rise by 2% to 1,335 pence at the end of the parliamentary address, while St James’s Place saw a rise of 3% to 96.7 pence after the speech.
Other retail brokers witnessing a rise included The Share Centre, which was up just over 1% and stockbroker and wealth management group Brewin Dolphin, which was up 0.5%.
Osborne said: “The government is giving the next generation choice and flexibility in their savings, by increasing the ISA limit to £20,000 and launching a new flexible Lifetime ISA for under 40s in which people can save up to £4,000 each year and receive an additional 25% bonus from government.
“Savings, including the government bonus, can be accessed to buy a first home and in retirement.”
Richard Parkin, head of pensions at Fidelity International, said: “We welcome any changes that encourages and incentives saving for the longer term – particularly those in the younger age group who are facing real struggles between saving for a pension and saving to get on the property ladder.
“The Lifetime ISA straddles that idea well and with flexibility on access, it will increase the appeal of longer term saving to younger generations.”