Plans to reduce the annual Cash ISA allowance were shelved following significant backlash from building societies. Chancellor Rachel Reeves was expected to announce this cut during her Mansion House speech. However, differing views within the Treasury prompted a decision to hold further discussions with the financial sector. The focus will be on promoting long-term investment in the stock market. Building societies emphasize the importance of maintaining the full £20,000 allowance, highlighting its role in helping consumers save and build financial resilience.
Our ambition is to ensure that people's hard-earned savings are delivering the best returns and driving more investment into the UK economy.
If reports that the Chancellor will not announce a cut to the annual Cash ISA allowance in her Mansion House speech next week are true, this is positive news for savers and for lenders.
Cash ISAs remain a vital tool for millions to build financial resilience over time, particularly in the current economic climate.
We look forward to sharing our views as part of any further consultation process, in support of policies that preserve the full Cash ISA allowance.
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