Britain needs to save more, says George Osborne

The Budget also contained a sharp rise in the amount that can be saved tax-free in an Isa. Savers will be able to put aside £15,000 annually from July.

He denied that his measure were encouraging savers to take money out of their pensions.

"A pension is an attractive product you can invest in if you'd like, but I have made the use of that pension pot more flexible, which could make it more attractive,' he said, adding: "It's a new area of policy, so it's uncertain.'

Here are the main points of his evidence:

Pensions

The Chancellor said consumer groups believe his pension changes will encourage long-term savings.

He said he expects a third of people will use new measures to take money out of pensions though admitted there is “inherent uncertainty”.

Household debt

On household debt, Osborne said there was a need to be “vigilant”, though better mortgage regulation should help.

“We don’t want to repeat the experience of 2005 onwards.”

Housing bubble

He also said housing bubble concerns should separate out the London market from the rest of the UK, and said there was no evidence that Help to Buy was pumping up prices.

Unpaid taxes

Osborne denied that granting HMRC the power to take unpaid taxes from people’s bank accounts was not a major constitutional change, but a more modern version of sending round the bailiffs.

Co-op

Osborne denied that the government put pressure on the Co-op to buy Lloyds branches, claiming that Labour was trying to divert attention.

FCA

The Chancellor said there would be an independent inquiry into the FCA’s decision to leak sensitive information.

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