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Peer2Peer Finance News | October 15, 2018

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Government rules out shifting regulatory responsibility for savings

Government rules out shifting regulatory responsibility for savings
Marc Shoffman

THE UK government has ruled out handing responsibility for savings levels to the Treasury but said it carefully considers views on tax reliefs such as ISAs.

MPs on the Treasury select committee had called for the government to move responsibility for household savings from the Financial Conduct Authority (FCA) to the Treasury and had also called for a review on tax reliefs to foster savings.

But a government response – released this week – to the review of household finances said it believes the current split of responsibilities between the Treasury and the regulators is “appropriate and has given the FCA a strong mandate which puts consumers at the heart of the regulatory system.”

The response said tax policy was kept under review.

Read more: Savings crisis “looming on the horizon”

“Any views expressed to us are carefully considered as part of this process,” the government said.

“When considering any changes to the current rules, the government will consider the impact any changes could have on savings income, the exchequer and the wider savings system.”

MPs had also called for the government to scrap the Lifetime ISA (LISA) due to it being too complex, but this was rejected by the government.

The response did, however, back calls for more “breathing space” for over-indebted households, beyond the current six weeks, and said a consultation on implementing a statutory debt repayment plan scheme would be unveiled shortly.

Read more: Cash ISA savers left £4bn short by inflation