There are calls for the creation of a “Great British ISA” with an additional £5,000 allowance to be invested in the British economy.
Mike O’Shea, chief executive of asset manager Premier Miton, wants policymakers to add a further £5,000 to the current £20,000 limit, exclusively for the new Isa.
The proposed Isa would take up to £5,000 a year in addition to the annual Isa allowance which would go towards listed UK equities.
Data from the Financial Conduct Authority (FCA) shows 8.4mn people who have £10,000 or more of investable assets hold most or all of it in cash.
O’Shea said if people invested the maximum £5,000 in a GB Isa it could raise £42bn for British businesses in the first year.
The chief executive said: “Ensuring companies have access to the capital they need will encourage them to scale up and list here in the UK. This will mean that companies’ headquarters, and all the associated high-paying roles, tax receipts and international prestige, remain here in the UK.
“At Premier Miton Investors, we think more British savings should be going into British companies. Our proposal, for a Great British Isa, would sit alongside other existing Isas, and help retail savers invest directly into listed UK equities.
“The GB Isa would fully unlock the potential of the City, to not only scale up smaller private companies, but to provide those same companies with an attractive listing environment to stay and grow here in the UK.
"With cross-party political will, we can deepen the capital liquidity on offer to British businesses and make the UK listing regime the global capital of capital.”
tara.o'connor@ft.com
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