The chancellor gave a modest boost to savers but disappointed the investment industry by only raising the total annual limit for individual savings accounts by a small amount, from £7,000 to £7,200.

Wednesday’s Budget saw a slight shift towards cash Isas, which cover savings accounts at banks and building societies. The limit for this type of Isa is to rise from £3,000 to £3,600. Both increases take effect in the tax year beginning in April 2008.