The Building Societies Association is urging the government to confirm its commitment to Individual Savings Accounts (ISAs) beyond 2012 following the emergency Budget.

Brian Morris, head of savings policy at the Building Societies Association (BSA), said today's budget announcement is a welcome move from the government, however. 

'The Chancellor's commitment to index link the annual ISA subscription limit from 2011/12 is good news for savers. We would like the Chancellor to go a step further and confirm the government's commitment to ISAs for the longer term.'

The BSA welcomes the commitment to a zero funding target in 2010/11 for National Savings and Investments and said this should help to minimise the potential for competitive distortions in the retail savings market.

The association is also in favour of the government's plans to provide a safety net for vulnerable homeowners facing financial difficulty.

'However, we note that the changes to SMI [support for mortgage interest] will mean less support for those paying an interest rate above the Bank of England average.'