The government is set to abandon plans drawn up by the Conservative administration for a “British Isa” designed to encourage investment in UK stocks.
The Labour Party is reported to have scrapped the scheme because of concerns that it would complicate the market for individual savings accounts instead of supporting UK equities.
Jeremy Hunt, who was then the chancellor, announced the British Isa in his budget in March to encourage investment in domestic stocks and offer a tax break for participating investors. Hunt’s announcement came amid rising concern about the valuation gap between UK and US-listed companies and a relatively low level of retail investment in equities listed on the London Stock Exchange.
The scheme provided a tax-free allowance for investment in UK shares of up to £5,000, which would be available in addition to the Isa allowance of £20,000.
However, the policy was criticised for complicating the investment…
