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Treasury Delays Cash ISA Reform Until Autumn Budget

Chancellor Rachel Reeves postpones potential changes to cash ISA limits, with reforms unlikely before April 2026.

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Chancellor of the Exchequer Rachel Reeves will deliver the Spring Statement on 26 March (Photo: Aaron Chown/PA Wire)

Overview

  • The UK Treasury is considering reforms to cash ISAs, including reducing the annual tax-free savings limit from £20,000 to as low as £4,000.
  • Chancellor Rachel Reeves has confirmed that no changes will be announced in the upcoming Spring Statement on March 26, with further updates expected in the Autumn Budget.
  • The proposed reforms aim to encourage more investment in equities, such as stocks and shares ISAs, to stimulate economic growth and the stock market.
  • Critics, including savings providers and financial experts, warn that lowering cash ISA limits could penalize cautious savers and reduce funds available for lending by banks and building societies.
  • Savers are advised to take advantage of the current £20,000 annual allowance before the new tax year begins on April 6, as reforms may come into effect as early as April 2026.