The campaign to save cash Isas is in full cry in your pages (“UK must avoid tampering with its tax-free investment wrapper”, Letters, and “Hargreaves Lansdown warns against end of cash Isa”, Report, February 22).
If ministers are keen to steer retail investment into more productive channels, they should also consider phasing out their own tax-free products from National Savings and Investments which help to finance the government borrowing requirement. NS&I index-linked and fixed interest certificates are no longer on sale, but existing holders can roll them over on maturity.
Around £22bn of these certificates are still held, with maturities of up to five years, so phasing them out should not add materially to annual gilt sales while removing a funding instrument of particular benefit to higher-rate taxpayers.
Paul McIntyre
London N19, UK
Letter in response this letter:
Ministers could look closer to home with NS&I / From Paul McIntyre, London N19, UK