The Personal Finance Society has welcomed the extension of business support measures in Chancellor Rishi Sunak’s Budget today but says more needs to be done to rebuild the resilience of individual savers who have been hammered by the pandemic.

The 40,000 member professional body, which runs the Chartered Financial Planner designation, says it is vital the government engages with the financial advice sector to “rebuild the financial resilience of individuals.”

PFS CEO Keith Richards said: “The extension of furlough to protect livelihoods and support for mothballed businesses to reopen is welcome news but to repair the long-term damage done to individual’s savings and financial safety nets caused by the financial fallout of Covid-19 it is vital the government engages with the financial advice and insurance profession to explore ways to rebuild the financial resilience of individuals.

“Chancellor Rishi Sunak has put the nation on notice of future tax increases to fund the ‘wartime’-like levels of borrowing that has taken place due to Covid-19. We would urge him to make sure any moves to fix the public finances and future tax changes do not discourage a savings culture that would build personal finances back better. Covid-19 has highlighted how important it is to incentivise people and businesses to set cash aside and insure themselves to protect them from future financial shocks.”

He was critical, however of the Chancellor’s decisions to freeze the personal tax thresholds and the pensions lifetime allowance (LTA).

He said: “By freezing the personal tax thresholds and pension lifetime allowance the government is failing to encourage people to save cash for a rainy day and to fund their later life. The freezing of the lifetime allowance also risks more NHS staff reducing their working hours or retiring early to avoid pension tax bills.”

He welcomed the new green retail savings product and new pensions flexibilities that will allow pension funds to invest in innovative ventures. 

Incentive grants for apprenticeships increased to £3,000 and £126 for traineeships were also positive step, he said.

He added: “Greater incentives for apprentices and employers to offer job placements will result in more individuals being able to access this profession, which is keen to attract fresh and diverse talent.”