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Reeves Reportedly Weighs Halving Cash ISA Limit Ahead of Autumn Budget

Officials signal a shift toward equity investing, with advisers urging savers to use current allowances before the 26 November Budget.

Overview

  • Reports indicate the annual cash ISA allowance could be cut from £20,000 to £10,000, though no decision has been confirmed.
  • Briefings frame the potential change as a nudge toward stocks and shares ISAs to boost household investment in UK equities.
  • City minister Lucy Rigby told an Investment Association event that long‑term stock market investing can outperform cash and said the government seeks a shareholding democracy.
  • Personal finance expert Rajan Lakhani advises using available ISA allowances now and moving taxable savings into ISAs, while avoiding hasty reactions to speculation.
  • HMRC reiterated that ISA contributions are currently capped at £20,000 a year and said it will contact savers after year‑end if they accidentally oversubscribe.