TheCityUK response to HMT UK ISA consultation

We welcome government proposals aimed at increasing the flow of UK savings into public markets, which include both listed and quoted companies. A UK ISA could play a role in achieving this objective.

However, we urge the government to adopt a more holistic and strategic approach. Collaboration with the financial services industry is essential to enhance the appeal of investing in UK capital markets for individual savers and investors, and to ensure these investments deliver positive outcomes.

We recommend a comprehensive review of the UK policy framework, regulatory environment, and tax regime impacting saving and investment behaviours and outcomes. This is crucial to meet the growing needs for retirement income, healthcare, and care services in our ageing society, and to drive economic growth, job creation, productivity, and resilience.

In line with this, we recommend a detailed review of the ISA regime to assess its public policy objectives and streamlined the system. This would make ISAs more accessible, understandable, and attractive to a broader range of individuals across the UK. Simplifying the overall ISA regime should be a key part of this review.

For a more detailed insight into our recommendations, download the full submission in PDF.