What is your view of increasing income tax on savings interest by two percentage points?

The government has announced a further two-percentage-point increase in income tax on savings interest from April 2027, bringing the total planned rise to four percentage points. Tax rates on savings interest would rise to 24%, 44% and 49% for basic, higher and additional-rate taxpayers respectively.

The increase would apply to taxable interest outside tax-free accounts such as ISAs, while existing Personal Savings Allowances would remain unchanged.

Supporters argue the increase would raise revenue for public services, while critics say it could discourage saving and reduce returns for savers.