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Treasury Weighs Cash ISA Cut to £10,000 as Savers Pile In Before Autumn Budget

Fresh inflows plus a required response to a pensions petition sharpen focus on the 26 November Budget.

Overview

  • An FT-sourced report says officials are considering reducing the annual cash ISA allowance to about £10,000, a move not yet confirmed by the government.
  • Building societies report a rush into tax-free accounts, with Yorkshire Building Society citing a 30% rise in ISA openings and nearly 50% higher balances versus a year earlier.
  • Bank of England figures show £2.4bn flowed into cash ISAs in September and £28.4bn so far this tax year, with deposits since Rachel Reeves took office topping £62bn.
  • Industry voices including Nottingham Building Society warn a lower cash ISA cap could deter saving and constrain mutual lenders’ capacity to support mortgages.
  • Pressure to protect pensions is intensifying as an AJ Bell petition for a ‘Pension Tax Lock’ passes 10,000 signatures, while economists flag a £20–£40bn fiscal gap prompting talk of wider tax measures.