Help investors in the Budget, broker says

A top investment broker issued a call today for the sector to be helped by Alistair Darling’s upcoming Budget.

Chartwell Direct said that ’cash refugees’ who were looking to invest their money in the wake of interest rate cuts from the Bank of England should be targeted.

The cuts have brought the Bank’s lending rate down to an all-time low of 0.5 per cent - reducing returns offered by savings accounts.

This has led to a rise in the number of people looking to put their money into higher-yielding stocks and bonds according to Chartwell Direct.

The broker said that the annual stocks and shares tax-free Isa limit should be raised from £7,200 to £10,000 as a consequence.

Rob Hudson at Chartwell Direct added: ’We are seeing more enquiries from ’cash refugees’ who … are now looking to invest further in the market as a valuable source of income.

’Our view is that as long as investors understand the variable nature of bond, gilt and equity income yields, there is a great opportunity to be investing in order to take advantage of depressed valuations and high historic yields.’

It is also heavily rumoured that a pension-based tax break for Britons who pay the higher rate of tax will be cancelled in this year’s Budget speech, which is to be delivered in parliament tomorrow.ADNFCR-2318-ID-19130980-ADNFCR