The Labour government is expected to abandon plans for a ‘British Isa,’ a scheme initially proposed by the previous Conservative administration to encourage investment in UK stocks.
The move comes amid concerns that the initiative would complicate the individual savings account (Isa) market rather than effectively support UK equities.
The ‘British Isa’ was announced by former Chancellor Jeremy Hunt in his March budget as a measure to promote investment in domestic stocks, offering a tax-free allowance of up to £5,000 in UK shares on top of the existing £20,000 Isa allowance. The proposal aimed to address worries about the valuation gap between UK and US-listed companies and the relatively low level of retail investment in equities on the London Stock Exchange.
However, the policy faced criticism from industry players who argued that it would overcomplicate the investment landscape. Leading DIY investment platforms,…
