Substance To The Stench

I apply quite a simple rule to all the announcements in any Budget…… ‘what’s in it for them’.

 

Take a decision made by the Chancellor, question what’s in it for that political party, dissect it from a number of angles and then publicise what it really means. Pretty simple……but it seems to work.

 

My initial reaction to the Budget was one of anger and disappointment. I felt it was a party political broadcast aimed at those aged 55 and over as 75% of this demographic will vote in the General Election next year. That was my initial ‘off the cuff’ reaction……unsubstantiated and lacking any merit to back it up.

 

And then I took to the internet in search of substance to support my reaction…….and an HMRC report into ISA investor demographics popped up. It’s a 24 page report but there were two key messages that came out of it (you’re very welcome)……

 

(1) Average ISA Subscription

 

The table below highlights that the average amount invested in an ISA is £3,945. If this is the average amount invested, why increase the limit from £11,880 to £15,000?

 

 

 

(2) Average ISA Savings By Age

 

The table below highlights the average ISA savings value increases dramatically for the over 55’s. Or to put that another way……the increase in the ISA limit is most likely to benefit an over 55 as they will want and use it.

 

 

My initial reaction was……what a complete farce of a Budget. And I stand by that even more. All we should ever want from any Government / Budget is to represent us well, do what is right and do what is needed for our long term prosperity.

 

A blatant attempt at vote winning doesn’t tick any of those boxes.

 

If you are not angry, you should be.