Overview

• The UK government is consulting on proposals to grant HMRC greater access to savers' financial data, including National Insurance numbers, to improve tax compliance.
• Proposed reforms to cash Isas include potentially reducing the annual tax-free allowance from £20,000 to encourage retail investment in equities.
• Critics, including privacy advocates and financial experts, warn the measures could lead to excessive government surveillance and data misuse.
• HMRC defends the proposals, stating they would simplify tax compliance for savers and help fund essential public services.
• The measures are part of a broader fiscal strategy to address rising borrowing costs and frozen tax thresholds without direct tax increases.