Nationwide Building Society comments on the Budget delivered by the Chancellor of the Exchequer earlier today.  Matthew Carter, the Society's mortgage and savings director, says:

Individual savings accounts (ISAs)

"While Nationwide welcomes the increase to ISA limits announced in the 2007 Budget which become effective next month, we are disappointed that the Chancellor did not go further in his first Budget to encourage and promote savings through ISAs.  We would like to see ISAs made more flexible and to see the Chancellor equalise cash and equity subscription limits, while also index-linking them to inflation.   Additionally, we would have liked to have seen the Chancellor introduce a withdrawal buffer that allows savers to make withdrawals and replenish their ISA within the same tax year, as this would particularly help people on lower incomes.

"If the Chancellor had done this, we believe the Government would be encouraging people to make full use of their ISA allowance and embrace the tax-efficient benefits they bring.  We hope that Alistair Darling will examine the ISA system further over the next year."

Children's savings

"Nationwide is disappointed the Chancellor has not used the Budget to encourage parents, family and friends to save for children of all ages.  We would like to have seen the Government announce a further contribution of £250 when a CTF child reaches the age of 11 and close the savings gap for children who do not qualify for a CTF, by increasing tax exemption thresholds for interest earned on children's savings."

Savings Gateway

"Nationwide is keen to see the public recognise the importance of saving.  Experience with the Child Trust Fund shows that one fifth of parents currently let their Child Trust Vouchers expire, losing valuable interest.  For another Government savings scheme to work, consumers need to be engaged fully about how to make the most of the savings schemes available."

Long-term fixed rate mortgages

"On the issue of fixed rate mortgages, we agree with the Chancellor that fixed rate mortgages do bring certainty to homeowners about the cost of their mortgage should Base Rate increase. The Society has for some time offered its members competitive fixed rate mortgages of five, 10 and most recently 25 years.