Budget 2016: SJP and HL shares jump on Isa reforms

Budget 2016: SJP and HL shares jump on Isa reforms

Wealth managers and investment firms have enjoyed a boost to their share prices after further measures to encourage saving were unveiled in the Budget.

George Osborne’s announcement that the annual Isa limit would rise from £15,240 to £20,000 from April 2017, along with the unveiling of a Lifetime Isa to encourage further saving, saw wealth managers make gains

Shortly after the Budget ended Hargreaves Lansdown shares were up by 2.2 per cent to £13.10 apiece, while St James’s Place shares had received a 3.1 per cent boost to 928p.

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The Lifetime Isa, available from next year, will be available to under-40s, and allow people to save up to £4,000 a year until the age of 50, with a 25 per cent bonus from the government to be used when purchasing a first home or in retirement. Housebuilder shares also moved higher on the news.

Other major movers in the UK market included soft drink manufacturers hit by the imposition of a sugar tax. AG Barr, the FTSE 250-listed maker of Iron Bru, saw shares fall 4.7 per cent.