Rachel Reeves plans boost for first-time buyers and new investors

Savers with cash in low-interest accounts will be blitzed with offers to invest their money instead, under government plans.

Banks will send savers details of stocks and shares investments and there will be an advertising campaign to raise awareness, the Treasury said.

In a series of proposals by Chancellor Rachel Reeves, a scheme that encourages the provision of low-deposit mortgages will also be made permanent.

Reeves is delivering two major speeches on Tuesday, as the government and chancellor aim to rebound from bruising blows on welfare and the winter fuel U-turn.

“We need to double down on our global strengths to put the UK ahead in the global race for financial businesses, creating good skilled jobs in every part of the country and helping savers’ money go further,” said Reeves, ahead of her Mansion House speech to City leaders.

The Treasury had already shelved any immediate plans to make changes to cash Individual Savings Accounts (Isas).

Savers can put up to £20,000 a year in Isas in savings and investments, to protect the returns from being taxed.

However, there is a plan in the Treasury to encourage people to invest for better returns, which would also boost growth in the UK economy.

But the value of investments can go down as well as up, and savers have tended to be cautious over the risks involved. In the newly-announced Treasury proposals, there is a potential for some of the warnings to be watered down.

The Treasury said there would be a “review of risk warnings on investment products to make sure they help people to accurately judge risk levels”.

The move is part of reforms designed to boost financial services in the UK, known as the Leeds Reforms.

However, there may be concern that encouraging letters and messages from banks to encourage investing might be seized upon by fraudsters who could also send fake investment claims to new investors.

In a speech in Leeds, the chancellor said she wanted to boost investment, and also help first-time buyers.

For some time, banks and building have had a backstop from the government to ensure they continue to give low-deposit mortgages to first-time buyers.

The chancellor said that scheme will be made permanent, a promise made in the Labour manifesto.

This comes after the Bank of England announced a looser cap on riskier mortgage lending, which the government says could help 36,000 more people buy a home over its first year.