Yorkshire Building Society has called on the Government to keep the current cash ISA limit and support first-time buyers in the Budget.

The policy asks have been included in the mutual’s formal submission to the Treasury before the Chancellor delivers her Budget to the House of Commons on 26 November.

In its submission to the Government, Yorkshire Building Society said that cash ISAs had “long been a cornerstone of personal savings in the UK”, as they provide tax-efficient encouragement for individuals to save.

“Simply changing the cash ISA limit is unlikely to result in more people investing, but it will hurt people who are responsibly saving for short-term goals, when investing is not appropriate,” the society said. “Cash ISA deposits underpin the UK mortgage market and represent a direct investment in the UK economy.”

The society is also calling on the Government to do more to support homeownership, including stamp duty incentives for downsizing and a new scheme for first-time buyers, such as Help to Buy.

“We want the Government to keep the £20,000 cash ISA allowance, because it offers our members a fair, tax-free return on shorter-term savings,” Yorkshire Building Society chief executive, Susan Allen, commented. “It gives them a safe and stable way to grow savings while supporting mortgage lending and strengthening the UK economy.

“We also want the Government to step up support for aspiring homeowners, especially first-time buyers, and do more to make the housing market work better for buyers, renters and landlords.

“As a building society, making good homes possible for more people is a key part of why we’re here. We’re asking the Government to support what we’re doing to overcome affordability challenges.”

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