"Rachel Reeves is set to cut the annual cash ISA limit from 20,000 to 12,000 in her make-or-break Budget, in what could be seen as a blow to hard-working savers. The chancellor is hoping to push more households to invest their savings into the UK stock market, as she scrambles to fill her 22bn fiscal black hole. Sources familiar with Wednesday's Budget preparations told the Financial Times that Reeves had initially planned to reduce the limit to a 10,000 cap."
"A cross-party Treasury select committee report from last month estimated British households have a total of 360 billion tied up in cash ISAs, with many opting for the tax-free accounts over riskier investments in stocks and shares. Between 2021-22 and 2023-24, money put into stocks and shares ISAs decreased by 9 per cent, while injections into cash ISAs more than doubled."
The Independent funds on-the-ground journalism and investigative work, produces documentaries like 'The A Word', and keeps reporting free without paywalls through reader support. Donations enable reporters to cover contentious US and global issues and to speak to multiple sides of a story. Chancellor Rachel Reeves plans to reduce the annual cash ISA limit from 20,000 to 12,000 in an effort to steer household savings into the UK stock market and address a 22bn hole in public finances. A Treasury committee estimated 360 billion sits in cash ISAs, with cash ISA inflows rising while stocks-and-shares ISA contributions fell by 9 percent.
Read at www.independent.co.uk
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