Reeves should take a leaf out of America’s book when it comes to encouraging investment in stock and shares, says Charles Hall

Although the focus in the Budget will be on the size and scope of tax increases, Rachel Reeves is also considering measures to increase economic activity, which includes encouraging savers to invest in equities. The comparisons with the US are very clear. Savers in the US invest considerably more in equities, which over time gives superior returns to most other asset classes and drives economic growth. Savings are a vital part of a healthy economy as they reduce dependence on the state and increase economic activity as people with savings have a greater propensity to spend given increased funds and a larger safety net.

In contrast, people in the UK have relied far more on property as a long-term investment. That worked well when interest rates were low, house prices were rising and cost of ownership was modest. The other key element of savings is cash and boy do we like cash. There is £1.9 trillion held in cash in the UK of which £430bn is in cash ISAs. Holding cash makes sense to provide a safety net for emergency purchases and a rainy-day fund. However cash should not be seen as an investment, given that........

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