Jupiter welcomes the Chancellor's increase to the annual ISA allowance as a step in the right direction.  

This increase - the first since ISAs were introduced in 1999 - is long overdue but may indicate a willingness to begin raising the limit on an annual basis. Also the proposed rise to the cash ISA limit and the upcoming removal of the distinctions between maxi and mini ISAs leaves smaller investors in a stronger position - giving them the flexibility to build up the cash element of their portfolio and transfer it into stocks and shares at a future date. 

Gordon Davidson, joint managing director of Jupiter Unit Trust Managers, said: "It's encouraging to see the Chancellor both reinforce the permanence of ISAs and increase their effectiveness with larger limits. Combined with SIPPs, ISAs are an important incentive for people to save, encouraging them to strengthen their long-term financial security." 

Personal pensions were also targeted in today's budget according to Jamie Fergusson, Pensions Development Manager at Jupiter. 

"Pensions remain the most tax efficient form of saving for retirement and the SIPP market continues to enjoy rapid growth. However, it is clear that in addition to the tax incentives, people really need a pension system that is simple and fair to persuade them to save for their retirement." 

"The industry had broadly welcomed the government's initiatives on simplifying the pension environment. A series of u-turns and rethinks implemented since A-Day have led to a system that is almost impossible for the layperson to navigate. Today's confirmation of the announcement in the pre-budget report on alternatively secured pensions (ASP) is just another example of this and makes income decisions for those in the later stages of retirement considerably more complicated." 

"It appears to be the Chancellor's intention to prevent a few wealthy people from using their pension plans to pass their pension savings to the next generation. The unintentional consequence of today's announcement on ASPs is that many people will continue to view the lottery of annuity purchase as their only option and may avoid personal pension saving as a consequence." 

The green measures announced in the Budget continue to show that green issues are becoming one of the most important global themes for investors today. The Chancellor announced a raft of measures to promote greater environmental awareness, including scrapping stamp duty on zero carbon housing, increasing vehicle excise duty on heavily polluting cars and extending the tax discounts for biofuels.

Emma Howard Boyd, Head of Socially Responsible Investment at Jupiter, said: "A number of these will have important connotations for people interested in green investing. As we have been saying for some time green investing is no longer simply about principle but profit." 

"I believe that today's announcements represent a combination of measures to price environmental costs, promote low carbon technologies and encourage behavioural change. This is not only good news for the environment but also increases the opportunities for companies in the field of environmental goods and services." 

A number of companies within our green funds are poised to benefit from the budget report. For example, the government's announcement of grants for insulation and central heating in the homes of pensioners is likely to boost companies such SIG, a leading international supplier of insulation and other products to the construction, building and diverse industrial markets.  

Another measure highlighted in the Budget is the increase in the landfill tax. This will encourage businesses involved in recycling as well as in the waste to energy sector. Shanks has been pioneering the use of a mechanical biological treatment process, developed by Ecodeco in Italy, to increase levels of recycling. Novera generates electricity from renewable sources including waste and landfill gas and has a proposed waste to energy plant in East London. 

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Jupiter Unit Trust Managers Limited (JUTM) and Jupiter Asset Management Limited (JAM) are both authorised and regulated by the Financial Services Authority and their registered address is 1 Grosvenor Place, London SW1X 7JJ. The group is collectively known as "Jupiter". The above commentary represents the views of the contributors at the time of preparation and may be subject to change. They are not necessarily those of Jupiter as a group and readers should be aware that they should not be interpreted as investment advice. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given."