The Chancellor has told Treasury officials to find ways to persuade savers to transfer billions of pounds held in low interest bank and building society savings accounts into the new growth bonds.
According to a report in the Independent newspaper, cash raised from the issuing of the bonds would be channeled into infrastructure projects such as toll roads, green energy and house building.
Savers could be offered tax breaks, similar to those available in Individual Savings Accounts.
If the Chancellor goes ahead with the scheme, it would be the first time since the Second World War that private savings would be used in the national interest.
Mike Leonard, Director of the Modern Masonry Alliance said, “We welcome all initiatives to stimulate the flagging economy.
“We would urge however, that the Chancellor’s focus should be on the housing market which will offer much faster returns, creating the employment we so badly need, economic recovery and homes for the millions on social housing waiting lists.
“We cannot stress enough the urgency of such measures and would encourage the government to proceed with all speed.”
