Overview

• Rachel Reeves has confirmed the £20,000 annual ISA allowance will remain intact, quelling speculation about an overall reduction.
• The Chancellor has not ruled out the possibility of capping the cash ISA allowance specifically, with a Treasury consultation planned after her July Mansion House speech.
• The government aims to encourage savers to shift from cash ISAs to stocks and shares ISAs to boost retail investment and support the UK economy.
• Banks and building societies warn that cutting the cash ISA limit could undermine mortgage funding and fail to achieve the intended boost in equity investments.
• Proposals to merge cash and stocks and shares ISAs into a single flexible account are being discussed to simplify the ISA system and promote balanced saving and investing.