John Healey is set to abandon plans to cut the annual cash ISA allowance from £20,000 to £12,000 in today’s (28 October) Budget, according to a report in the Financial Times.
The proposed reduction was announced by former chancellor Rachel Reeves in her last Autumn Budget in November 2025. The reported reversal could also see proposed anti-circumvention measures dropped, including restrictions on transfers from stocks and shares ISAs to cash ISAs and a 22% charge on interest earned on cash and cash-like investments held within stocks and shares ISAs. Quilter chief customer and operations officer Jo Harris said the proposed cut was unlikely to address the underlying reasons why so many people prefer to hold their savings in cash. "There is a positive in ...
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