NS&I Premium Bonds customers could be in for 'miserable news' today

The Budget could impact National Savings and Investments and its Premium Bond savers - who could be in for 'miserable news' today, it has been warned. Jeremy Hunt, the Chancellor, is set to deliver his fiscal Spring Budget on Wednesday (March 6).

He will lay out the government's latest plans to 'boost' the British economy which could include some major changes to taxes and other economic policies. Meanwhile, the Office for Budget Responsibility (OBR) will publish its revised forecast for the British economy and public finances.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said: "More than 24 million savers will be hanging onto Jeremy Hunt's every word for good news on Premium Bonds in this week's Budget. They suffered a cut to the prize fund this month, and need to know whether this is the last of the bad news or just the start."

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Premium Bonds, which are from NSandI and backed by the Treasury, are "unlikely to be name-checked" on Wednesday, Ms Coles said. But she suggested Mr Hunt "should confirm" NSandI's net financing target, reports BirminghamLive.

Ms Coles continued: "If the Chancellor makes a change from this year's target of £7.5billion plus or minus £3billion we can expect savings rates to move. The organisation has to balance three things."

"It needs to raise enough money for the Treasury as cost-effectively as possible. There will be greater scope for higher rates on savings products, a higher Premium Bond prize fund, or putting one-year bonds back on sale."

If the target is lowered and NSandI has to raise less, interest rates will decrease as cost effectiveness increases. Ms Coles added: "This could be miserable news