"Cash ISAs are not idle money. They meet real and practical needs, helping people to build financial resilience, save for a house deposit or manage their finances in retirement. They also provide the foundation for future investing and supplying essential funding for mortgages and other lending. The BSA's analysis suggests that a cut in the annual Cash ISA limit from £20,000 to £5,000 could lead to 17,000 fewer mortgage loans and reduce GDP by around £7 billion over five years, undermining economic growth and tax revenues."
"We are very concerned that the Chancellor is still considering cuts to the Cash ISA limits. We support efforts to help more people to invest and grow their wealth, especially in the UK, but cutting the Cash ISA limit simply won't achieve this. Instead it would undermine one of Britain's most successful savings products and a stepping stone that has helped millions to build financial resilience and confidence to invest for their future."
The Building Societies Association warns cuts to the Cash ISA annual limit would be counterproductive, harming savers, the housing market and the wider economy. Reducing the limit would not encourage investment but would penalise responsible savers, restrict flexibility and could raise mortgage costs. Cash ISAs meet practical needs: building financial resilience, saving for house deposits and managing retirement finances, while providing a foundation for future investing and funding for mortgages. BSA analysis estimates cutting the limit from £20,000 to £5,000 could cause 17,000 fewer mortgage loans and reduce GDP by about £7 billion over five years. The BSA urges maintaining current limits and supporting informed financial choices.
Read at London Business News | Londonlovesbusiness.com
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