Osbourne's new savings scheme

northerner77

From the Independent this morning:

http://www.independent.co.uk/news/uk/politics/osbornes-latest-plan-ask-britains-savers-for-money-7818038.html


Do you think this plan will go down well with savers?

northerner77

The Chancellor has told Treasury officials to find ways to persuade savers to transfer billions of pounds held in bank accounts, building societies and investment funds to new government "growth bonds".
The money would be invested in infrastructure projects such as toll roads, green energy and housebuilding.
Savers could be offered tax breaks, similar to those available in Individual Savings Accounts (ISAs).

mardatha

He wants you to give him your money so he can build, among other things, toll roads. So give the nice man all your savings so he can charge you money to drive up the road.

oldvicar

Calling on private savings to be used in the national interest would be the first time such a potentially lucrative source of cash has been tapped since the Second World War. Then, savings certificates were issued to help finance the war effort under a scheme which eventually became National Savings and Investments. NS&I, wholly owned by the Government, manages about £98bn in savings, has 9 per cent of the entire UK savings market and accounts for 16 per cent of the national debt. It is understood that one option being investigated by the Treasury is using NS&I as the vehicle for the new bonds.

Make them have the best features of index-linked certificates and he can borrow my money.

[I think the Indie is out of date about the size of the national debt and the proportion NS&I accounts for]

northerner77

oldvicar wrote: »

[I think the Indie is out of date about the proportion NS&I accounts for]

I think you're right.

ed123_2

...bonds tend to drop in value in periods of rising interest rates ie in the short/medium term now. Savers should not be hoodwinked into thinking bonds are as safe as saving accounts. I also think that we will see a collapse in UK gilts later this year.......ed

whatismoney

mardatha wrote: »

He wants you to give him your money so he can build, among other things, toll roads. So give the nice man all your savings so he can charge you money to drive up the road.

They have to get funds from somewhere, if not it will be our pensions next.

C_Mababejive

northerner77 wrote: »

From the Independent this morning:

http://www.independent.co.uk/news/uk/politics/osbornes-latest-plan-ask-britains-savers-for-money-7818038.html


Do you think this plan will go down well with savers?

Havent they leeched off us enough via taxation and QE ? parasitic scum..

Glen_Clark

Toll roads work in TRANSIT countries like France which have about 5 times as many foreign vehicles on their roads. Just passing through, Britain to Spain, Spain to Italy, Italy to Britain etc, contributing nothing to the French economy but using their roads. But Britain has almost no foreign vehicles just passing through - all those who come here are contributing to the economy in other ways.. Toll roads would just be an expensive way of collecting tax from them, which would be passed on to us in other ways, like increased transport costs to Britain raising the price of our goods. It would also discourage vehicles from using the safer motorways and push them on to minor roads.
We are paying the highest vehicle and fuel taxes in Europe. Then he wants our savings to build toll roads and charge us again. :mad:
The Government has had several goes at foisting this toll roads con on to us and failed. Maybe they think it will be easier if they get savers involved. Like their old 'Tell Sid' campaign to sell us the utility companies we already owned?
Except that toll roads have been a bad investment (M6 toll) because the punter doesn't have to use them.
The best thing you can say about this trick is at least it isn't the usual one of printing more money to rob us through inflation. Maybe the public are finally getting wise to that one?

pqrdef

Looks like he's struggling with Plan mini-B. A pooled £2bn from the UK pension funds is a kick in the teeth. NS&I can easily raise that much.

But Osborne seems to think he should be able to use the depressed conditions to sell something cheaper and/or riskier than the government's usual ways of borrowing.

If he's not talking guaranteed returns, I'm out. None of these projects looks profitable. Even War Loan paid a fixed coupon.

spadoosh

Glen_Clark wrote: »

Toll roads work in TRANSIT countries like France which have about 5 times as many foreign vehicles on their roads. Just passing through, Britain to Spain, Italy etc, contributing nothing to their economy. But Britain has almost no foreign vehicles just passing through - all those who come here are contributing to the economy in other ways.. Toll roads would just be an expensive way of collecting tax from British vehicles. It would also discourage vehicles from using the safer motorways and push them on to minor roads.
We are paying the highest vehicle and fuel taxes in Europe. Then he wants our savings to build toll roads and charge us again. :mad:

Toll roads are an awesome idea (dont think many will agree on here though) charge the people who use the roads the most more money! You ever been near the m25, its a joke! Toll roads would sort that right out.

Why should a granny who drives her car to bingo once a week be charged the exact same amount as someone whos driving 1000 miles a week commuting where is logic or fairness in that?!

Plus more taxes can be raised to improve our failing infastructure (fair enough i think this should be concentrated on anyway but seeing as it doesnt appear too high up on the governments agenda we need some way of funding improvements our roads are close to being the worst in europe) and i will not even get started on the archaic rail network or the multi million pound high speed rail link thats going to take 20+ years to build!!