Should we gift every newborn £1,000 to invest?
Every child could receive a pot of £1,000 at birth to be channelled into long-term investments in UK growth under proposals to give the young a leg up and revive a ‘stagnant’ economy. The idea of a ‘New Generation Trust’ is part of a package of reforms that could add £225billion to the economy, says a report by the City of London Corporation. A £1,000 payment to all newborn children would need to be invested - and it is claimed this could provide long-term capital for UK PLC. It revives memories of the Child Trust Fund scheme launched by Gordon Brown two decades ago, and later scrapped by George Osborne – and that hasn’t exactly been a roaring success. This week, Lee Boyce, Simon Lambert and Georgie Frost discuss the merits of the idea – and why whether this happens or not parents should start building a pot for children as early as possible. It’s been another exciting week for savings – Santander has a new best buy easy-access deal, Moneybox has launched a top cash Isa and First Direct is offering five prizes of £12,500 for those who switch current account – including a £175 bonus for doing so. Bank of England governor Andrew Bailey has been speaking in front of MPs at the Treasury Select Committee about base rate – are we close to the peak? House prices saw their biggest slump since 2009 according to Halifax, with the average home falls £14,000 in a year – chiming with similar data from Nationwide. And finally, electric cars are slumping in value – many models have lost 30 per cent or more in a year. Is now the time to buy, and what on earth is going on?