Today’s Budget confirmed changes to the annual investment limits in Individual Savings Accounts.

From 6 April 2008 the annual ISA investment limit will be £7,200 with the amount that can be held in cash rising to £3,600.

Investors in ISAs will also be able to transfer from a cash ISA into a stocks and shares ISA, although not the other way round.

Cliff Husband, research director at AWD Chase de Vere, says, ‘The new ISA rules raise the spectre of another ghastly financial scandal. People could switch their ISA cash savings into investments unaware that they can’t switch back. When people realise that they could be missing out on income tax relief on thousands of pounds on savings there could be a series of complaints to the ombudsman and regulator. This highlights why they should be taking advice.

‘This looks like another poorly delivered initiative from the government – it would be far fairer to all taxpayers if the switch between cash and investment within an ISA could be easily reversed.’

Darling also announced the launch of the saving gateway across the UK with the first accounts available to savers from 2010.

The saving gateway will provide government matching for savings over the duration of individuals’ participation in the scheme. This has the potential to introduce up to 8 million people into mainstream savings in the UK who otherwise might not make thrift a priority.

TISA director-general, Tony Vine-Lott said, ‘We believe that it is in everyone’s interest to encourage more savings by more people across the UK. The saving gateway has a very important role to play in building a fairer society and improving financial engagement.’