Overview

• Chancellor Rachel Reeves has shelved immediate plans to reduce the annual cash ISA limit following warnings from building societies and consumer bodies.
• Existing cash ISA balances will remain untouched, offering assurance to over 18 million savers who hold more than £300 billion in the accounts.
• Building societies cautioned that trimming the £20,000 allowance would shrink deposit pools used to fund mortgages, risk higher borrowing costs and threaten homebuilding goals.
• Skipton and Leeds building societies reported 45 percent and 47 percent jumps respectively in new cash ISA openings ahead of the expected reform announcement.
• A Treasury spokesman said the government’s priority is to secure better returns for savers and boost investment in the UK economy, with further industry input to guide any future ISA reforms.