Investors caution Reeves' ISA reforms 'would need to strike a careful balance' to solve UK investment crisis

‘A significant shift’ but not unprecedented

Sorin Dojan
clock • 2 min read

Rachel Reeves’ plans to cut the tax-free limit for Cash ISAs to £4,000 a year could push more people to invest their savings, the chancellor and investors argued.

Their comments came after reports from The Telegraph on Wednesday (19 February) revealed that Reeves was in talks with senior City executives to consider ways to bolster UK economic growth, including how to push UK savers to step up their investment contributions. The meeting led to discussions about simplifying tax-free savings, including cutting the Cash ISA limit to just £4,000 a year. Currently, investors have a tax-free allowance of up to £20,000 each year to invest in ISAs. There are four types of ISAs into which UK savers can put their money: Cash ISAs, Stocks and Shares ISAs, ...

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