Overview

• Yorkshire, Coventry and Skipton building societies say cutting the £20,000 cash ISA allowance to around £4,000–£5,000 would shrink deposit funding that makes up 39% of their retail savings and force them into pricier financing
• Lenders caution that higher borrowing costs will feed through into steeper mortgage rates and risk derailing the government’s goal to build 1.5 million new homes
• Bank of England figures show savers deposited a record £14 billion into cash ISAs in April, while providers such as Plum report deposit surges of up to 69% in early July
• A Treasury spokesman has declined to comment on speculation over the proposed changes, stressing that no final decision has been confirmed
• Chancellor Rachel Reeves is expected to set out the government’s stance on cash ISA allowances in her Mansion House speech on July 15