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Cut tax breaks on cash Isas to push public into riskier shares, City firms tell Rachel Reeves

Financial companies have told the Chancellor that the £300 billion held by Britons in cash Isas could be yielding better returns for savers if they opted for riskier stocks and shares Isas.



The main conceptual idea of the article is that several City firms are urging Chancellor Rachel Reeves to cut tax breaks on cash Individual Savings Accounts (Isas) in order to encourage people to invest in riskier, but potentially more profitable, stocks and shares Isas. They argue that the £300 billion currently held in cash Isas could be better used to boost the UK economy by investing in businesses. This proposal aims to address concerns that individuals are prioritizing safety over potential returns by opting for cash Isas, leaving a significant pool of capital untapped in the stock market.

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