Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of the availability of cash individual savings accounts offered by banks and building societies on mortgage rates.

HM Treasury does not prepare forecasts for the UK economy. These forecasts, including assessments of the impact of policy decisions on the macroeconomy, are the responsibility of the independent Office for Budget Responsibility (OBR).

The OBR does not typically publish estimates of the impact of individual policies. Instead, the net effect of the government’s policy package is assessed by the OBR. The pricing and availability of mortgages is ultimately a commercial decision for lenders.

The Government is looking at options for reforms to Individual Savings Accounts (ISAs) that get the balance right between cash and equities to earn better return for savers, boost the culture of retail investment, and support the growth mission. The Government recognises that cash savings play an important role in helping households build a financial buffer for a rainy day.