Chancellor Rachel Reeves Considers Reducing Cash ISA Limits to Boost Investments

Proposed changes to the £20,000 annual cash ISA cap aim to encourage retail investing but face backlash from savers and lenders.

Rachel Reeves is reportedly exploring lowering the annual cash ISA limit from £20,000 to £4,000 to promote retail investing in stocks and shares.
The proposal seeks to emulate the U.S. investment culture and improve returns for savers, according to Reeves' comments to broadcasters.
Critics argue that reducing cash ISA allowances could make mortgages more expensive, as savings deposits fund loans for households and businesses.
Investment firms and building societies warn that the move may not drive increased stock market participation due to risk aversion among savers.
The Treasury has stated that all aspects of savings policy are under review, with potential changes expected in the upcoming spring statement.