Chancellor Rachel Reeves is reportedly considering a significant overhaul of Cash ISAs in the upcoming November Budget, with a potential reduction of the annual tax-free savings allowance from £20,000 to £10,000. This move is aimed at encouraging savers to divert funds from cash savings into the UK stock market, a strategy intended to boost domestic investment and potentially generate higher returns for individuals, mirroring investment culture in the United States.
The proposal has faced opposition from building societies, which argue that cash savings are crucial for individuals saving for emergencies. Despite this, sources close to Reeves suggest she is committed to promoting investment in British companies for economic growth and better saver returns. While no final decisions have been made, cutting the ISA limit remains an option being considered as part of a broader strategy to encourage investment.
Reeves' team confirmed the consideration of this change, emphasizing that various options are on the table. The Treasury has stated its commitment to protecting cash savings for those who need them for ra... download the app to read more
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