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ISA increase could have had a green bonus

The ISA allowance increase will be a welcome boost to many UK savers, but missed an opportunity to also benefit the UK's green economy

19-03-2014 | Commenting on the news cash and stocks ISAs are to be merged into a single New ISA with an annual tax-free savings limit of £15,000 Huw Davies, head of personal banking at Triodos Bank comments:

"Today's budget announcement will be a welcome boost to many savers, but missed an opportunity to also benefit the UK's green economy and enhance the Government's environmental credentials.

"This increase could have been used to scale-up the green economy, if the chancellor had resurrected his idea of Green ISAs. Less than two weeks have passed since the House of Commons cited a £12bn hole in the funding needed to finance the transition to a low-carbon economy. The funds likely to be raised by the uplift could have helped to plug the funding gap, injecting capital into the green economy while still providing a welcome tax incentive to UK savers.

"Savers can still put their increased ISA allowance to work for good by moving to an ethical ISA. This not only means you get a good financial return, but also peace of mind that your ISA is making a positive difference to people, society, and environment. At Triodos Bank, our savers will always know exactly how we are using their money, and that it is only financing organisations delivering a positive environmental, social or cultural impact."

Read our pre-budget blog to find out how we believe Green ISAs could have provided a boost for savers and the green economy.