Overview

• Government sources and media reports say a £10,000 cap on the cash element of the £20,000 annual ISA allowance is under consideration to steer more savings into equities.
• The Treasury says multiple options remain on the table and no decisions have been made, adding that it will protect the role of cash savings.
• City minister Lucy Rigby highlighted figures showing long‑term investing has historically outperformed cash to support the drive for a broader shareholding culture.
• Building societies warn a lower cash ISA limit could reduce deposit inflows that fund mortgages, raising borrowing costs and jeopardising housing targets.
• Other proposals being discussed include reviving a ‘Brit ISA’ with an extra allowance for UK shares, simplifying or merging ISA types, and scrapping stamp duty on UK stocks bought within ISAs, with context that about £300bn sits in cash ISAs and over 14 million people hold £10,000 or more in cash.