Anyone looking for reform of the Lifetime ISA, specifically a lower early withdrawal charge, would have been left waiting by this week’s Budget.

But the Lifetime ISA is still a popular investment wrapper for some people. I do not have one, but if I did, here are three shares I would consider buying for it.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

British American Tobacco

Over time, British American Tobacco (LSE: BATS) has been a solid dividend payer. Indeed, it has raised its payout per share annually for decades and currently offers a yield of 8.7%.

If the payout keeps growing as it has been, the prospective yield could be even higher.

But one threat is the decline in cigarette use in many markets. In the first half, British American sold 250bn cigarettes. That is a lot, but it represented a 13% decline compared to the same period the prior year.

For now, though, cigarettes continue to generate a lot of spare cash the company can use to fund dividends. On top of that, it has been actively developing its non-cigarette business, selling products such as vapes.

With a portfolio of premium brands, marketing expertise and an enormous global distribution network already in place, I reckon that could turn out to be a money spinner for the FTSE 100 company in coming decades.

M&G

Another income share I would consider for a Lifetime ISA is M&G (LSE: MNG). The asset manager actually yields more than British American at the moment, 10.2%. It has also raised its dividend annually over the past several years, although it should be noted that no dividend is ever guaranteed to last.

Whether this dividend will depends partly on the business’s performance. Demand for asset management is huge and likely to remain that way. The UK industry alone has assets under management of around £9trn. Not only does M&G operate here, it also has extensive operations overseas.

With a strong brand, large customer base and long experience in the field, I think M&G has a number of competitive advantages. But one risk I see is ongoing net client outflows of money in the firm’s UK institutional business. That was an issue in the first half and could eat into future fees and profits too.

Diageo

The long investing timeframe of a Lifetime ISA would suit me well as a long-term investor.

So while Diageo (LSE: DGE) may lack the high yields of the two shares above, I think investors should still consider buying it. The yield is 3.3% and the distiller and brewer has raised its decade annually for decades, like British American Tobacco.

Diageo’s business is highly cash generative thanks to owning a stable of unique premium brands. I am hopeful the dividend can keep growing.

However, weaker demand in Latin America has hurt the share price – down 15% this year – and I see a risk that a soft economy could see that problem spread to other regions.

But a lower share price means the share now trades on a price-to-earnings ratio of 18. I see that as good value for a company of Diageo’s quality.

I think it could offer the potential for long-term share price gain. After all, the share is available today at a 24% discount to its price five years ago.