It makes total sense for the chancellor to answer calls for a UK Isa with a plan for a new additional allowance of £5,000 purely for British shares. It won’t win votes, but it will assist in delivering badly needed support to capital-starved companies, and at no upfront cost. In fact, supporting home-grown companies should generate increased tax revenues.
By rewarding investors in the domestic market with an extension to the main Isa tax shelter, the aim is to help stem the outflow of investment money from the UK market and to tempt others with low or zero exposure to reconsider.
A stronger stock market where companies are fairly valued will make it easier for companies to raise investment capital for their future growth and encourage others to list and stay listed. That, in turn, will benefit the economy and jobs. That is in everyone’s interests. It will help avoid the iniquity of companies…
