Reeves Ploughs Ahead With Plans to Cut Off Cash ISAs – Guido Fawkes

Reeves Ploughs Ahead With Plans to Cut Off Cash ISAs

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The Treasury is advancing plans to cut Britons’ access to cash ISAs after concerted lobbying from City firms hungry for the £294 billion currently held in them. City minister Emma Reynolds held a meeting with large banks yesterday at which proposals to restrict the savings product were discussed. Those currently include:

• Lowering the Cash ISA cap from £20,000 to £4,000. £5,000 has been touted too…
• Merging ISAs into a single framework to make it easier for consumers to mix investments and cash. And also cap the cash at £4,000…
• Mandate 50% exposure to UK equities in stocks and shares ISAs. Reeves is forcing pensions that way…

Cash ISAs are more popular than stocks and shares – doubly so – because they are sheltered. Guido analysis shows for example that had the value of cash ISAs been forced into the stock market during the Trump tariff market bonanza they would have lost £31 billion. While Torsten Bell has pledged that the ISA format won’t be scrapped entirely Reeves is launching a review into the ISA market in a couple of weeks. As Labour casts around for growth forcing the direction of private investment will not help…