Overview

• Chancellor Rachel Reeves has suspended proposals to lower the annual cash ISA limit and will hold further consultations before pursuing any reforms.
• Building societies and major lenders issued an open letter and saw spikes in account openings—Skipton reported a 45% jump—as they warned cuts could drive up mortgage costs and hinder homebuilding goals.
• Data from Nottingham Building Society shows only 38% of cash ISA holders would consider switching to stocks and shares ISAs if the allowance was reduced and a significant share would save less overall.
• A Treasury spokesperson reaffirmed the aim to ensure savers’ funds deliver stronger returns by redirecting some deposits into equities without penalising risk-averse savers.
• Any ISA allowance adjustments are expected to take effect in April 2026 following autumn budget announcements, and will not be applied retrospectively to existing savings.