Experts yesterday accused the Government of punishing the responsible behaviour of savers as it battles its own deficit.I had an enjoyable run-in with a socialist worker activist in Princes Street a week ago. He asked me to sign a petition against the "Tory Cuts". I said that unfortunately there weren't any such cuts. He said that the cuts were 25% per year. I countered by saying that he should have said 25% over four years but that was outweighed by continuing additional spending elsewhere. The debt is still rising, albeit at a reduced rate than under ZNL. He refused to believe me.
Andrew Hagger, of personal finance website Moneynet.co.uk said: “It’s another door slammed in the face of savers.
“Consumers who have been increasingly relying on the one sure fire way of protecting their nest egg from inflation will be dismayed that the government has without any warning, pulled the rug from under their feet.”
And now National Savings are stopping the sale of index-linked savings. Fortunately I switched some cash into them a couple of weeks ago from a deposit account that now pays 0.5% pa. Inflation's coming folks.