Spring Budget 2024: British ISA unveiled to encourage UK business investment

Jeremy Hunt said tax cuts would offer a "much needed help in challenging times" and "stimulate economic growth" ahead of an expected general election later this year.

The Chancellor, delivering a statement aimed at reviving both an ailing economy and reversing the Conservatives’ opinion poll deficit, said he was offering "permanent tax cuts".

His headline announcement was a 2p cut to national insurance, matching a reduction announced in the autumn statement, alongside a series of measures to help hard-up households with the cost-of-living.

It comes as the Conservatives are attempting to curry favour with the electorate and create dividing lines with Labour, as recent polling suggests just 20% of the public would vote for them at the next election.

The Chancellor’s financial package is billed as a "Budget for long-term growth", but is set against the backdrop of the UK’s struggling economy, which slipped into a technical recession at the end of 2023.

For businesses, the VAT registration threshold will be increased from £85,000 to £90,000 from the start of April, with the aim of taking "tens of thousands" of businesses out of paying it altogether in order to help them grow.

He also announced a new British ISA, which will allow an additional £5,000 investment in UK-based companies and assets, with the aim of helping them expand.

During his spring statement in Westminster, Hunt said: "After a consultation on its implementation, I will introduce a brand new British ISA which will allow an additional £5,000 annual investment for investments in UK equity with all the tax advantages of other ISAs.

"This will be on top of the existing ISA allowances and ensure that British savers can benefit from the growth of the most promising UK businesses as well as supporting them with the capital to help them expand."