The IMA is calling on the Government to raise the ISA allowance to £9,600 and urges further incentives to boost savings in the UK.
A number of trade bodies have now made calls for the ISA limit to be reviewed and pressure is mounting on the Government to make substantial changes in this year's budget.
IFA trade body, AIFA, made an appeal earlier this month while Skandia suggested it should rise to £9,000 to be in line with RPI increases since first introduced.
According to the IMA, ISA sales in 2008 fell 15% on 2007, and since 2004, stocks and shares ISA have seen annual outflows.
Richard Saunders, chief executive of IMA says: "In part, this can no doubt be explained by the performance of the stock market over the last decade."But the time is also ripe to look for ways to rejuvenate the incentives to save in ISAs. A good start would be to raise the ISA allowance to £9,600, a level which would restore its value taking account of inflation since its introduction."Investment Week
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