The Chancellor is reportedly mulling over a reduction to the £20,000 annual limit that people can put into cash Isa savings accounts.
Rachel Reeves, the UK Chancellor, is considering reducing the annual cash ISA deposit limit from £20,000 to £4,000 to encourage investment in stocks and shares. She aims to foster a culture of retail investing, having discussed strategies with City executives. Reeves emphasizes supporting savers while balancing cash and investment ISAs. The current limit, in place since 2017, allows £20,000 annually, with £300 billion held in cash ISAs by over 18 million people. However, savings providers and critics oppose the reduction, arguing it could hinder access to cash savings and impact loans for households and businesses.
