"The UK has some of the lowest levels of retail investment in the G7. And that is not only bad for businesses, who need that investment to grow, it's bad for savers too. "Someone who's invested £1,000 in an average stocks and shares ISA every year since 1999 would be £50,000 better off today than if they'd put the same money into a cash ISA.""
"From April 2027, I will reform our ISA system keeping the full £20,000 allowance while designating £8,000 of it exclusively for investment, with over 65s retaining the full cash allowance. "And thanks to our changes to financial advice and guidance, banks will be able to guide savers to better choices for their hard-earned money. "Over 50% of the ISA market - including Hargreaves Lansdown, HSBC, Lloyds, Vanguard and Barclays - have signed up to launch new online hubs to help people invest in Britain.""
Government will cut the tax-free ISA allowance structure while keeping the overall £20,000 limit. Previously savers could place up to £20,000 tax-free in a cash ISA or a stocks-and-shares ISA. From April 2027 the ISA system will retain the full £20,000 allowance but designate £8,000 exclusively for investment, with over-65s retaining the full cash allowance. The UK reportedly has low retail investment in the G7 and investing £1,000 annually in a stocks-and-shares ISA since 1999 would have produced about £50,000 more than cash. Banks will be allowed to guide savers and major providers will launch online investment hubs. Industry lenders warn the change will hurt savers, noting many Cash ISA customers use the full allowance and rely on them for low-risk stability.
Read at London Business News | Londonlovesbusiness.com
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