Some campaigning groups reckon news of a savings gulf between Britain and stronger world economies comes after analysts at the National Institute of Economic and Social Research warned that the UK is in the midst of recession again. In stark contrast, China's economy clocked up 8.9 per cent growth in the final three months of 2011. Germany, Europe's largest economy, grew 3 per cent last year. It is expected to grow 0.7 per cent in 2012 in spite of the Eurozone debt crisis plaguing the continent.
Rose, of Save Our Savers, says: 'For three years savers have been sacrificed to prop up people who have borrowed too much money - this sort of short-term political expediency by almost completely blind politicians is putting at risk everyone in the country. 'He says MPs and power-brokers at the Bank of England, which has held rates at an all-time low 0.5 per cent since 2009, must do more to stimulate saving in Britain. This might include suspending income tax on savings, boosting the tax-free savings limit, or hiking rates.
Savers can put up to £5,340 a year into an Isa and earn interest tax-free. The best return is 4.5 per cent from Bank of Ireland. But this still doesn't keep the cost of living, which is rising at 4.8 per cent a year. The effect is to eat away the value of cash over time. If you are worried about the state of your economic affairs Enable IFA's of Bishop’s Stortford can help you work through your options.
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