Speaking ahead of Monday's Pre-Budget Report (PBR), the ABI says the Chancellor has a "golden opportunity" to encourage the public to save and, in turn, stimulate the economy.

Alistair Darling is expected to announce a range of measures, including tax cuts, to boost consumer spending.

But the ABI says it is essential he recognises the economic benefits increased savings could offer, particularly for the struggling banking and investment sectors.

The ABI says the Government should introduce Personal Accounts and auto-enrolment in workplace pensions as soon as possible to help boost Britain's savings ratio.

Introducing Personal Accounts in 2010 would yield more than £500m in additional long-term savings by 2012, according to the ABI.

Stephen Haddrill, director general of the ABI, says: "The Government has a golden opportunity to boost workplace pension saving by enabling automatic enrolment now.

"The pensions industry, employers and the rest of the private sector is ready to deliver auto-enrolment as soon as the green light is given."

The ABI also wants the Chancellor to increase the ISA limit from £7,200 to at least £10,800 to encourage higher savings and more investment in the stock market.

"Increasing ISA limits would give the millions of existing ISA savers, plus many more potential new ones, an added incentive to increase their tax-efficient savings, while giving a positive boost to the stock market," explains Haddrill.

The Prime Minister has already signalled tax cuts will be a major part of the PBR, but has given no indication of any measures to encourage savings.

Contact: John Bakie, Tel: 020 7484 9805, e-mail: John.Bakie@incisivemedia.com