Savers with cash in low-interest accounts will be targeted with offers to invest their money in stocks and shares instead, under government plans.

Banks will send savers details of possible investments and there will be an advertising campaign to raise awareness, the Treasury said.

In a series of proposals by Chancellor Rachel Reeves, a scheme that encourages the provision of low-deposit mortgages for first-time buyers will also be made permanent.

Reeves is delivering two major speeches on Tuesday, as the government and chancellor aim to rebound from bruising blows on welfare and the winter fuel U-turn.

“We need to double down on our global strengths to put the UK ahead in the global race for financial businesses, creating good skilled jobs in every part of the country and helping savers’ money go further,” said Reeves, ahead of her Mansion House speech to City leaders.

The Treasury had already shelved any immediate plans to make changes to cash Individual Savings Accounts (Isas).

Savers can put up to £20,000 a year in Isas in savings and investments, to protect the returns from being taxed.

However, there is a plan in the Treasury to encourage people to invest for better returns, which would also boost growth in the UK economy.

But the value of investments in assets such as shares can go down as well as up, and savers have tended to be cautious over the risks involved although the spending power of savings can be eroded by rising prices. In the newly-announced Treasury proposals, there is a potential for some of the warnings to be watered down.

The Treasury said there would be a “review of risk warnings on investment products to make sure they help people to accurately judge risk levels”.

The move is part of reforms designed to boost financial services in the UK, known as the Leeds Reforms.

However, there may be concern that encouraging letters and messages from banks to encourage investing might be seized upon by fraudsters who could also send fake investment claims to new investors.

While there are some protections in place, savers will need to be wary of some unsolicited messages.

At a meeting with business leaders in Leeds, the chancellor said she wanted to boost investment, and also help first-time buyers.

For some time, banks and building have had a backstop from the government to ensure they continue to give low-deposit mortgages to first-time buyers.

The chancellor said that scheme would be made permanent, a promise made in the Labour manifesto.

But some campaigners believe the chancellor is aiming at the wrong target.

“Since the scheme operates entirely behind the scenes between lenders and government, we don’t expect first-time buyers will notice any difference,” said Paula Higgins, chief executive of the Homeowners Alliance.

“This feels more like a political gesture than a practical solution to the housing crisis. If the government really wants to support first-time buyers, it should turn its attention to fixing the Lifetime Isa.”

The rules around Lifetime Isa have been criticised as failing to live up to promises for first-time buyers.

Last week the Bank of England announced a looser cap on riskier mortgage lending, which the government says could help 36,000 more people buy a home over its first year.

“I want more of those people to be able to get a mortgage of their own,” Reeves said.

Other reforms outlined by the chancellor include:

• A reform of the ring-fencing regime – which was brought in after the 2008 financial crisis to separate banks’ retail and investment banking activities
• Proposed changes to the financial ombudsman, which could lower payouts but make the system more simple
• Speeding up changes to the financial services’ senior managers regime, which was also brought in after the 2008 crisis to vet individuals before they are appointed and hold them accountable for problems and risk-taking

She also said the government would “stick to the commitment” not to raise what she called the “key taxes” that working people paid – income tax, national insurance and VAT.

The chancellor wants to re-set from a difficult few weeks for her and the government. The bond markets moved when she made a tearful appearance at Prime Minister’s Questions and there was speculation about her future.

However, the City welcomed Sir Keir Starmer’s subsequent backing of his chancellor.

On Tuesday, share prices in London hit an all-time high, with the FTSE 100 share index rising through the 9,000 point mark for the first time in early trading.

However, there is wider concern in the City about companies being less enthusiastic over listing their shares on the London Stock Exchange.

The regulator, the Financial Conduct Authority (FCA), has confirmed it will introduce a series of measures to lower costs for UK businesses looking to secure investment.

Companies that are already listed on London’s stock markets will not need to publish lengthy prospectuses in order to issue more shares and raise funds in most cases, it said.

New rules will also halve the time it takes between initial documents being published and an IPO (initial public offering) to list on the London Stock Exchange.