"The importance of long-term saving and investment are at the heart of today's Budget.
"It is only by connecting millions of savers effectively with productive opportunities for investment that we will achieve both the economic growth and the financial returns essential to create a wealthier society."
Chancellor announces changes to the ISA allowance and the new Lifetime ISA
Jonathan Lipkin, Director of Public Policy at the Investment Association, said:
"Today's Budget has a major emphasis on long-term savings. First, and importantly, it has left the incentives in place for people to continue to save for later life through workplace pensions, an essential foundation.
"At the same time, the new lifetime ISA looks like an exciting development that can incentivise younger people with increasingly difficult and competing savings needs to put money away for key life stages. This could help to create a more widespread savings culture in the UK, particularly if it can be used for long-term investment that will both fund economic growth and deliver strong returns.
"Last, but not least, the rise in the ISA limit to £20,000 is a great vote of confidence in the ISA brand and a further opportunity for people to save even more for their futures without paying any tax on their returns. Again, Government and industry should look at how savers can be encouraged to do so most productively
"The new savings regime that results from these changes offers the benefits of attractive incentives and flexibility. We will look forward to working with the Government as it moves to implementation."
Investment Association's Productivity Action Plan hailed by Chancellor
Andrew Ninian, Director of Corporate Governance at the Investment Association, said:
"Productivity can drive economic growth and encourage UK businesses to invest for the long term.
"The Action Plan the Investment Association is launching next week, referenced by the Chancellor today, will outline how we as investors can play a fundamental role to help improve UK productivity and support long-term investment. The Action Plan seeks to deliver ambitious and achievable remedies to the ills of some of the most serious causes of short-term thinking in the British economy.
"The investment industry remains steadfast in its commitment to play its part in fixing the UK productivity puzzle and help fix the challenge of our generation."
Get involved via Twitter by tweeting @InvAssoc and using #UKproductivity
Simplicity and fairness for fund investors
Bond fund investors are set to enjoy new levels of simplicity and fairness after the Chancellor has backed an Investment Association bid to change the way they are taxed.
From April 2017, bond fund managers will stop automatically collecting 20% tax from their income payments to investors.
It is being introduced to help bond fund investors enjoy the new Personal Savings Allowance hassle-free, and will radically simplify the tax regime for bond funds.
Jorge Morley-Smith, Director of Business Support Promotion at the Investment Association, said:
"From April, basic-rate taxpayers will be exempt from tax on the first £1,000 of interest (£500 for higher-rate taxpayers), and receiving distributions without tax deducted means that you will not need to file tax returns simply to claim tax back. It also ensures that UK funds continue to be an attractive and competitive savings vehicle for UK and overseas savers."