US EditionRachel Reeves Set to Cut Cash Isa Allowance
UNITED KINGDOM, JUN 30 – Chancellor Rachel Reeves pauses proposed cut to the £20,000 tax-free cash ISA limit following industry concerns about potential mortgage and savings impacts, with 12.5 million accounts affected.
- Chancellor Rachel Reeves is expected to reveal a reduction in the tax-free limit for cash ISAs during her speech at Mansion House on July 15, 2025.
- This announcement follows speculation and aims to encourage savers to move money from cash ISAs into stocks and shares ISAs to boost UK investment.
- The current £20,000 annual ISA limit covers cash or investment ISAs collectively, but the specific cash ISA portion is likely to be reduced, possibly as low as £4,000.
- Martin Lewis argued that reducing the limit could backfire, suggesting that if the goal is to financially encourage investing through such changes, it may instead frustrate many individuals without delivering the intended results.
- The cut could shift some of the £300bn cash ISA holdings into UK equities, potentially stimulating domestic growth, although exact timing and impact remain uncertain.
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Nation.Cymru
Nation.CymruCash Isa limits set to be left untouched at next week’s Mansion House speech
It is understood that Chancellor Rachel Reeves will focus on new plans to provide consumers with the information and support they need to invest.
·London, United Kingdom
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Total News Sources65
Leaning Left4Leaning Right4Center31Last UpdatedBias Distribution79% Center
Bias Distribution
- 79% of the sources are Center
79% Center
C 79%
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