Reeves’ Cash ISA Ban Would Have Wiped £31 Billion Off Brits’ Savings – Guido Fawkes

Reeves’ Cash ISA Ban Would Have Wiped £31 Billion Off Brits’ Savings

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Rachel Reeves has been talking about ‘reforming’ cash ISAs for some time to “encourage investment” in the London Stock Exchange, which could include slashing the allowance from £20,000 down to £4,000. City executives have been pressuring hard to scrap cash ISAs completely and move savers’ cash into stocks and shares ISAs instead. City minister Emma Reynolds last month bemoaned “Why have we got hundreds of billions of pounds in cash ISAs?” Reeves said at the Treasury Committee last week – on ‘Liberation Day’ – that cash ISA reforms were on the way…

The Spring Statement was meant to be D-Day for the changes, but the plans were shelved, instead expected to be announced in the Autumn budget. Pensioners will be breathing a sigh of relief at the timing, considering the FTSE 100 tumbled by 11%, falling from 8,642 to 7,702 in the three days after Trump’s tariffs announcement. The fallout is still ongoing…

Guido’s crunched some numbers. Currently, cash ISAs – not tied up in the FTSE or LSE – hold a chunky £285 billion. Had all those cash ISAs been forcibly moved into stocks and shares ISA (which hold £420 billion), they’d have lost a staggering £31.46 billion. Well above Labour’s invented “£22 billion black hole.” Just fortunate timing that Trump made his tariff announcement before Reeves had made any changes…