Overview

• City Minister Emma Reynolds met with senior executives from six major banks and building societies to discuss potential cash ISA reforms.
• The proposed changes include reducing the £20,000 annual tax-free cap to encourage investment in UK stocks and shares ISAs.
• More than 18 million savers hold £300 billion in cash ISAs, which currently cost the government £6.7 billion annually in tax revenue.
• Industry groups, including UK Finance, warn that cutting the allowance could harm risk-averse savers and mortgage funding stability.
• A formal consultation on ISA reforms will begin this summer, with any changes unlikely to take effect before April 2026.