The move comes as Reeves continues to try and get retail investors to put their cash into British stocks to boost the country’s stagnant economy. The government believes investing in equities will help British companies grow, while also giving savers a better return on their money.
Three investment firm bosses with knowledge of the agreement’s draft wording said it included a new proposal for the companies to create dedicated “invest in Britain” sections on their websites or trading platforms to offer “U.K.-focussed ready-made portfolios” to consumers.
The Treasury’s plan stops short of reviving a controversial “British ISA” plan created by Jeremy Hunt as top finance minister in the last conservative government. The Labour government’s option relies on consumer choice to make it easier for savers to find funds part- or entirely-invested in the U.K.
It is currently unclear how many firms have signed up to the agreement with the budget looming next week.
The Treasury intends for its changes to the ISA landscape — set to be announced at the budget — to be in place by April 2027, not next spring as some industry stakeholders had thought.