But Mr Healey is poised to stick with Ms Reeves’ plan for a new savings account aimed at helping people buy their first home in the statement on October 28, The i Paper reports. It would replace the existing Lifetime ISA and award a Government bonus to buyers purchasing their first home, with no withdrawal penalties for spending elsewhere and no upper age limit for opening or paying into an account.
Critics have labelled it restrictive, as accounts can only be opened by under 40-year-olds who must stop paying in at 50 and face a 25% withdrawals penalty unless funds are used for property or retirement.
A spokesperson for the Treasury told The i Paper: “We recognise that the Lifetime ISA is not working for everyone, particularly when people’s circumstances change.
“That is why we have consulted on a new and improved product, specifically designed to support first-time buyers and without penalty for withdrawals.”
It remains to be confirmed what the First Time Buyer ISA’s annual savings limit will be, alongside the value of the Government bonus and the price cap on properties, which is £450,000 under the existing model.
Mr Healey promised to control Government spending in a major speech on Monday but refused to rule out tax rises in the Budget.
He said: “I dedicate myself to this mission as Chancellor to make Great Britain Growth Britain again with more investment, more innovation and more jobs. Whether it is the cost of business or the cost of living, the only way we deal with these in the long term is growth.”
He also said the Government would extend its reforms of judicial review from energy projects to all major infrastructure programmes including transport and water and reiterated a commitment to transferring power out of Whitehall.
