Chancellor Rachel Reeves is reportedly considering halving the annual tax-free cash Isa allowance from £20,000 to £10,000 in an upcoming budget. This move is intended to encourage savers to invest their money in the stock market, aiming to stimulate the UK economy. The proposal comes as the government faces a significant budget deficit.
While a Treasury spokesman acknowledged the importance of cash savings, they also emphasized the Chancellor's commitment to encouraging investment in British companies for better returns for savers. This potential cut to the cash Isa limit is one of several Isa reforms being considered, with the return of the £5,000 additional allowance for UK-listed company investments also reportedly on the table.
This proposed reduction would bring the cash Isa allowance back to levels not seen since 2009. Critics, including building societies and personal finance experts, argue that cutting the cash Isa li... download the app to read more
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