Rachel Reeves set to cut cash ISA allowance in blow to savers — here’s what you need to know
Here’s when Rachel Reeves will unveil the details of her cash ISA cuts
- Rachel Reeves is expected to announce plans to reduce the annual allowance for cash ISAs in her Mansion House speech on 15 July.
- The proposed reform aims to encourage individuals to invest more and achieve better long-term returns, rather than solely holding cash.
- While the overall £20,000 tax-free ISA allowance will not be cut, the specific limit for cash ISAs is under discussion, marking the first major alteration since 2017-18.
- The move has drawn criticism, with Martin Lewis stating it could lead to more tax for ordinary savers and expressing concern that it might not effectively encourage investment.
- Industry voices like AJ Bell advocate for broader reforms, such as simplifying the ISA landscape and removing stamp duty, to genuinely encourage investment rather than just cutting Cash ISA limits.