Rachel Reeves sent huge cash ISA cut warning over 2.5bn Treasury losses

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"Rachel Reeves has been warned that cutting cash ISA limits will cost the Treasury billions and will not encourage people to start investing. The Building Society Association (BSA) say the damage inflicted by cutting cash ISA rates would result in up to 60,000 fewer mortgages being offered across the property market, as well as hamper the government's own target of 1.5 million new homes across the term of parliament."

"As a result, BSA estimate that damaging economic growth and reducing tax revenues could hit the Treasury by 2.5bn. Over the summer, building societies including Nationwide and Skipton wrote to the chancellor pleading with her to leave cash ISAs untouched. Building societies are among those who offer cash ISA products and use those deposits to support their ability to fund residential mortgages. Cutting the amounts saved into them could hit building society mortgage supply by 5 per cent, says BSA research."

The Independent deploys reporters across US issues including reproductive rights, climate change and Big Tech and keeps reporting free, funded by donations. Donations enable on-the-ground journalism and interviews with both sides of stories. Rachel Reeves has been warned that cutting cash ISA limits would cost the Treasury billions and would not encourage people to start investing. The Building Society Association warns reductions could lead to up to 60,000 fewer mortgages, hinder the government's 1.5 million new homes target, and reduce growth and tax revenue by an estimated £2.5bn, while hitting mortgage supply particularly for first-time buyers.

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