Urging the Government to move the UK from a spending to a saving culture, Fay Goddard, deputy director general of AIFA, said, ‘Earlier this year, we saw the savings ratio fall to a 47-year low. It’s disappointing that this Pre-Budget Report didn't include any new policies to incentivise people to save for their own future.’

Graham Beale, chief executive of Nationwide Building Society, agreed with AIFA. He welcomed the changes made to the ISA regime in the 2007 Budget but said the Chancellor should have gone further yesterday.

‘We would like to see ISAs made more flexible and see the Chancellor equalise cash and equity subscription limits, while also index-linking them to inflation and allowing equity ISA holders the option to switch all or part of their investment to cash,’ he explained. ‘By doing so, we believe that the Government would be encouraging people to make full use of their ISA allowance and embrace the tax-efficient benefits they bring. We hope that the Chancellor will examine the ISA system further, ahead of the 2008 Budget.’