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Budget 2014: Savers in Suffolk will be a ‘paltry’ £19 a year better off with new combined tax-free Nisa, says Money Saving Expert Martin Lewis

PUBLISHED: 16:08 19 March 2014 | UPDATED: 16:09 19 March 2014

Chancellor of the Exchequer George Osborne holds the budget box

Chancellor of the Exchequer George Osborne holds the budget box

Savers in Suffolk will be able to put aside up to £15,000 a year tax free, the Chancellor announced today.

Revealing his 2014 Budget, Chancellor of the Exchequer George Osborne said the current cash ISA and the stocks and shares ISA will be combined to create a new ISA - Nisa.

Nationally, banks and building societies have hailed the move, with nationwide describing it as “much-needed support for ordinary savers”.

But Moneysavingexpert.com founder Martin Lewis said the benefits of the Nisa would be significantly held back by paltry interest rates available on cash deposits.

He calculated the additional tax gain from the increased limit would work out to just £19 a year more on the best deal in the market, which pays 1.65%, for basic rate taxpayers who invest the full £15,000.

He said: “While it’s a good long term gain, dig through the current numbers and the advantage of increasing the cash ISA limit from £5,940 to the new Nisa limit £15,000 isn’t as big as many will think.

“This is because you can’t ignore the fact that cash ISA rates are at all-time lows.”

Will you be taking advantage of the Nisa? Share your thoughts on the budget via Twitter today using #Budget2014 #Suffolk, or leave a comment below.

Drivers have reported delays this morning in Bury St Edmunds after roadworks – which are planned to last for 16 weeks – began in the town.

Witham MP Priti Patel faced questions over the prospect of a possible Cabinet return this morning in her first broadcast interview since quitting over her secret meetings with senior Israeli figures last year.

This is the last week that market traders will operate from Ipswich’s Cornhill for at least a year as work to rebuild the town centre is due to start.

Young apprentices in Haverhill have been honoured at an awards ceremony held to celebrate their successes and achievements.

Drivers are being warned they could face delays as roadworks begin at one of Ipswich’s busiest junctions this morning.

The government has still not agreed a deal to end its £50m commitment for the regional fire control “white elephant” in Cambridgeshire – nearly two years after negotiations started.

A police helicopter was involved in a search which continues this morning for a motorist involved in a single-vehicle crash in Suffolk last night.

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