06 Mar 2024

Incentivising UK investors

Budget 2024

By Fiona Morrison from Francis Clark Financial Planning

Is buying British best? In Jeremy Hunt’s speech for the UK Spring Budget today, he set out ways of incentivising UK investors investing and saving in the UK. However, this is all light on detail at this stage.

You could own shares in NatWest

• “We will proceed with a retail sale for part of the Government’s remaining NatWest shares this summer at the earliest opportunity, subject to supportive market conditions and value for money”
• Higher risk investors may be interested, but as we know single company shares are volatile as therefore not for funds where you have a reliance on the capital

A new British savings bond

• A national savings and investment bond focussed on British investment with a guaranteed interest rate in return for committing your capital for three years
• This could be a useful home for saving for financial projects coming up in three or four years’ time as variable interest rates will drop as inflation continues to reduce
• The cash savings are backed by HM Treasury, therefore the depositors compensation limit of £85,000 is not a consideration

A UK ISA

• Jeremy Hunt announced, “today following calls from over 200 representatives of the city and our high growth sectors I will reform the ISA system to encourage more people to invest in UK assets”
• Today simply announces a further £5,000 subscription allowance for funds invested in UK companies which have the same tax benefits as current ISAs
• The additional £5,000 to invest in tax free savings is welcome. However, when this may appear and what it may include asset-wise seems very unclear. The consultation ends on 6th June 2024, and we await more detail

Mashud Rahman, head of investments at Francis Clark Financial Planning, says: “Over the past few years, we have shifted across to a view that prefers a more global approach, using a smaller allocation towards the UK in light of weaker growth forecasts and continuing political uncertainty, not forgetting the impact of Brexit still looming. The introduction of an UK ISA to encourage growth in the UK is great, however it remains important for investors to remember that a globally diversified portfolio will be better positioned to provide sustainable long term returns midst the changing macroeconomic environment.”

So, is British best?

I think a diversified approach to investing is the best way to achieve long term performance, but the UK does and always will play a part in this.

If you have questions about what this may mean for your investments, please speak with your financial adviser who will be happy to help.

Read more analysis in our Spring Budget 2024 hub.

Get in touch

Related insights

People walking along bridge towards Big Ben in London.

What tax changes might John Healey introduce in his Budget on 28 October?

28 August 2026

Read
Two colleagues deep in thought discussing what they see on a laptop

Exceptional circumstances

25 August 2026

Read
A wooden house cut out lies on a desk, on top of a Post-it note inscribed in black marker with 'Stamp Duty Tax' .

SDLT issues for commercial development

21 August 2026

Read
Group of business people in discussions sitting down around a laptop

FRS 102 revenue recognition changes are coming: is your business ready?

20 August 2026

Read

Breaking UK tax residence: what does it mean and why does it matter?

19 August 2026

Read
Warehouse operative using a tablet to manage inventory in a logistics warehouse, surrounded by stocked pallets and shelving, representing supply chain and international trade operations.

Avoid these common pitfalls on the road to export success

18 August 2026

Read
business people sit around a table and one, a man stands talking, they are in a modern office and all wearing smart suits

Our response to the key elements of the latest SRA consultation

18 August 2026

Read
Two professionals in business attire are having a conversation in an office setting with a world map on the wall behind them. In the background, four other people are seated and engaged in discussion.

Pillar 2: What you need to know before 30 September 2026

18 August 2026

Read
An outdoors group shot of PKF Francis Clark's new trainees at the University of Exeter

New accountancy and tax trainees start their careers with PKF Francis Clark

18 August 2026

Read
Man sitting at a laptop, looking out of the window

Could charity trustees be caught by the new close company director reporting requirements?

17 August 2026

Read
A father and his adult son are standing, leaning on chairs, at their family-owned upholstery business.

Why family investment companies are back in the spotlight

14 August 2026

Read

Companies House identity verification: enforcement is getting closer

11 August 2026

Read