There has been speculation that the Chancellor of the Exchequer will introduce in the November Budget a minimum for UK companies to hold a stocks and shares ISA. With this in mind, here are three local stocks to consider offering in a Brit ISA. They are all members of FTSE 100 index It has been included in the index since its launch in January 1984.

Good for income

At this moment (October 24) Legal and general (LSE:LGEN) is the highest yielding stock in Footsie. Of course, there's no guarantee this will continue, but the wealth manager has promised to increase its dividend by 2% per year from 2025-2027. It is also planning a series of stock buybacks.

Significant future earnings growth is expected from the pension risk transfer business. The group recently reached £200bn of defined benefit contribution scheme assets under management.

However, the group's share price has lagged the FTSE 100 over the past five years. It operates in a highly competitive industry where a number of its competitors have a lower cost base.

But with its strong balance sheet, healthy pipeline of potential new business and generous dividends, I think it's a UK stock worth paying attention to.

Untapped potential

Share price baby (LSE:BP.) It will ebb and flow in line with energy prices. This means that its valuation on the stock market can be volatile. They are also unpopular with ethical investors, so there is a smaller pool of potential buyers to push their market value higher.

However, in response to shareholder pressure, the oil and gas giant is going through something of a transformation at the moment. It is seeking to boost its free cash flow by drilling more, divesting some non-core assets and cutting costs.

BP has relatively higher production and operating costs than many of its competitors. If they can close the efficiency gap – and I see no reason why they can't – their stock prices should rise regardless of what happens in global commodity markets. It is also among the top ten in terms of dividend yields on the index.

For these reasons, it has a place in my ISA and why I think other investors could consider adding it to their ISA.

Still number one

Despite the threat of so-called discounts. Tesco (LSE:TSCO) remains the largest grocery company in the UK. Its current market share of 28.3% is higher than it was in October 2020 and more than that of its closest competitors combined. Although it has had to cut prices to beat increasing competition, it has enough cash to pay a dividend in line with the FTSE 100 average.

But she cannot rest on her laurels. Industry margins are still razor-thin, and price wars in supermarkets are a constant threat. There is also some speculation that the government wants to shift the burden of trade prices away from smaller stores to larger stores.

However, Tesco has shown itself to be remarkably resilient in recent years. Despite facing higher National Insurance costs and supply chain inflation, its adjusted earnings per share for the 52 weeks ending February 22 (FY25) were 25% higher than in FY21. It has also become more efficient as evidenced by a 16% rise in sales per full-time equivalent employee.

As a brave Brit, I think it's the stock to consider putting in a locally focused ISA.