The government has confirmed it is looking at reforms to ISAs and working on delivering a targeted support system, in a Spring Statement that was relatively quiet on major policy announcements.

In the statement, Chancellor, Rachel Reeves, said that the government was “looking at options” for reforms to ISAs, which will seek to strike the right balance between cash and equities, and boost the culture of retail investment.

Furthermore, she confirmed that the government was “working closely” with the Financial Conduct Authority (FCA) on a targeted support system as part of the regulator’s Advice/Guidance Boundary Review.

“We welcome today’s commitment from government to boost the culture of retail investment, including looking at options for ISAs reforms that will get the balance right between cash and equities to earn better returns for savers,” said Investment Association chief executive, Chris Cummings.

“Our industry has long called for the government to create a culture of inclusive investment, which will see more people benefit from investing, and we’re pleased that the government has now heeded this call.”

The Investing and Saving Alliance chief executive, Carol Knight, added: “Better routes for consumers to access meaningful advice, guidance and education are essential to unlocking personal investment.

“We welcome the Chancellor's announcement that they will be working with the FCA to deliver a system of targeted support, which will help millions more make effective financial decisions and feel confident in investing their cash.”

In the Spring Statement documents, the Treasury mentioned its plan to abolish the non-dom regime and introduce a residence-based scheme from 6 April 2025, as announced in the Autumn Budget.

It stated that the new residence-based regime will be “more attractive” to new arrivals than the current rules, and that the government will work with stakeholders to ensure the new regime is internationally competitive, and focuses on attracting talent and investment to the UK.

“There was nothing in this statement to stem the flow of non-doms, many of whom have been leaving to more favourable jurisdictions following the removal of inheritance tax protections on existing settlements announced in the Autumn Budget,” said Utmost Wealth Solutions global wealth specialist, Marc Acheson.

“As a result, we can expect to see a continuation of non-doms and high net worths exiting the UK in the coming years, with significant ramifications for future tax receipts.”

The documents added that the government wanted to ensure the UK was “the best place in the world” to start and grow a business, and that it will work with entrepreneurs and venture capital firms on policy, including the role of tax reliefs such as the Enterprise Management Incentives Scheme, the Enterprise Investment Scheme, and the Venture Capital Trust Scheme.

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