LOCAL BUILDING SOCIETY CHIEF WELCOMES KEY BUDGET MEASURES
A Staffordshire business head says there is much to be welcomed in the Chancellor’s new budget – especially for would-be home owners!
Susan Whiting, CEO of Market Square-based Stafford Railway Building Society, says the raising of the total ISA limit from £15,240 to £20,000 from next April is excellent news, whilst she is particularly interested in the new Lifetime ISA.
Mrs Whiting explains: “For the Lifetime ISA there are substantial Government contributions, which should provide real practical assistance to those under 40 trying to save for their home or pension; however it’s imperative that consumers understand exactly what they are signing up to. This works best as a long term commitment, so early withdrawal - for purposes other than for the purchase of a first home or post 60 for retirement - could mean a substantial reduction in the savings pot.
“An announcement made ahead of the budget was that the taxation of savings interest will change from 6th April (tax will not be deducted at source any more from interest paid to individuals, but there will rather be a personal savings allowance), however those receiving more interest than the allowance may need to submit a tax return and then must be sure to pay any tax due after the end of the year.”
On the housing front, Mrs Whiting is both optimistic and cautious, agreeing in principle to proposals that speed up planning permission and improve availability of brownfield land.
She says: “Early certainty and a reduction in the hurdles facing developers, particularly smaller developers, is helpful, but can only ever be part of the equation.Affordability of mortgages and rent is stretched and we have a long way to go before the supply of housing increases, whether for home-ownership or the rental market. It’s important that any changes to housing policy address these issues.
“The Starter Homes Land Fund, which will invite Local Authorities to access £1.2 billion of funding to remediate brownfield land for starter homes, is to be welcomed; however the current proposal that buyers of these starter homes will (after just five years) be able to sell them at full market value is not the first example of an initiative that results in keeping house prices high.”
Mrs Whiting also welcomed the firm expectation from Government that the burden relating to Bradford & Bingley PLC in particular is expected to disappear before the end of the 2017/18 financial year. Since 2009, banks and building societies have been paying £400 million a year in interest payments to the Financial Services Compensation Scheme.
Stafford Railway Building Society is a mutual organisation providing savings and mortgages, with personal service, to the Stafford community and beyond.
ENDS