Jeremy Hunt calls for “more money from NS&I savers” to help cover the UK’s borrowing costs in his autumn statement

The Chancellor will reportedly demand more money from savers in the Autumn Statement as he raises targets for national savings and investment.

Customers who invest in NS&I products, which are 100 per cent backed by the Treasury, are effectively funding the government.

Jeremy Hunt tried to raise more money in a similar way in March, increasing targets for NS&I premiums and savings bonds for the 2023-24 financial year from £6bn to £7.5bn to meet borrowing needs.

The Chancellor appeared on BBC1’s current affairs program with Laura Kuenssberg on Sunday – and he could demand more money from savers in the autumn statement

According to The Telegraph, this target will be raised further in the autumn statement.

The previous hike proved a boon for savers as NS&I raised interest rates on a range of products to attract deposits.

Last month the company withdrew its best-ever savings bond – with a 12-month return of 6.2 per cent – after signing up 225,000 customers in just five weeks.

Figures from the Bank of England show that £7.7 billion flowed into NS&I deposits in September alone, the highest level since August 2020.

From April to September, the first half of the financial year, there were net inflows totaling £10 billion.

Raising more money in this way could reduce the government’s need to sell bonds in financial markets, which is the government’s main way of borrowing.

Nomura economist George Buckley said the rise in national savings could reduce the need to sell British bonds – known as gilts – by £20 billion in the current financial year.

The investment bank’s experts assume that the financing target could be increased to 12.7 billion pounds.

Savers will rejoice at the prospect of better deals after years of inflation eating away at the value of their next eggs.

With interest rates at their highest since 2008 and inflation now falling, this finally means their money is earning a real return.