The looming crackdown on cash ISAs is set to rake in an extra £100m for Rachel Reeves’s Treasury in a fresh blow to savers, The i Paper can reveal.
Risk-averse savers who keep their money in cash, rather than moving it into a stocks and shares ISA, will end up paying tax on any interest earned, netting the Treasury tens of millions of pounds more than initially estimated.
It comes as a senior Labour MP warned ministers that their overhaul of the tax rules is “creating complexity and confusion”. At the same time, industry insiders are frustrated at a lack of detail on how the reforms will work.
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POLITICS
Polanski backs Starmer rivals to take over
Green Party leader Zack Polanski (Photo: James Manning / PA)
Zack Polanski, leader of the Green Party of England and Wales, has said he would much rather see left-leaning figures like Angela Rayner or Andy Burnham leading the rival party than Sir Keir Starmer.
What did he say?
Polanski told Sky News: “It is no secret that Burnham and Rayner would be much closer to my politics”.
Caption: LONDON, ENGLAND – APRIL 23: Prime Minister Keir Starmer speaks as he visit Kenton United Synagogue, which was recently the target of an attempted arson, on April 23, 2026 in the Kenton district of London, England. A 17-year-old boy pleaded guilty to trying to set fire to the building last weekend by throwing a bottle containing a type of accelerant through the synagogue’s window, causing minor damage. The prime minister visited the synagogue to meet with local leaders and “pledge his unwavering commitment to stand with the Jewish community and root out antisemitism.” (Photo by Dan Kitwood/Getty Images)
Photographer: Dan Kitwood
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Former deputy prime minister Angela Rayner described the proposed changes as ‘un-British’ (Photo: Phil Noble/AFP)
He suggested that under different leadership, he could reassess a potential election pact.
However, he caveated that he did have “reservations about their policies”.
Mayor of Greater Manchester Andy Burnham (Photo: James Speakman/PA Wire)
Anyone but Starmer
The Green Party leader admitted he would prefer a Government led by one of the more progessive Labour politicians.
“I do think it’d be a significant improvement to remove Starmer and make sure that the party as leaning more towards the left,” he said.
He added he wants to see an end to “rip-off Britain”.
Number of years Brits that can expect good
health is declining
Over the past decade, the
amount of time we are expected
to remain healthy for has fallen
by two years, with experts
warning the country is “going backwards”.
Caption: Deputy manager Kuldeep Singh speaks to an elderly resident at Applegarth Care Home, as the care sector braces for crisis over the British government’s plans to reduce migration numbers, in Maidenhead, Britain, March 11, 2026. REUTERS/Isabel Infantes
Photographer: Isabel Infantes
Provider: REUTERS
Source: REUTERS
The story in numbers
73%
The proportion of life a woman spends in good health declined from 77 per cent to 73 per cent between 2012 and 2014.
For men, it declined from 79 per cent to 77 per cent.
51 years
In Blackpool, the healthy life expectancy (HLE) was just 51 years old for men.
Women in Hartlepool had the same shockingly low HLE.
British health is getting worse
Unlike other comparable countries seeing steady improvement, the Health Foundation’s research found the British population’s health is poor and worsening.
In more than 90 per cent of the UK, the HLE was now lower than the state pension age, the study found.
Caption: Deputy manager Kuldeep Singh holds the hand of an elderly resident at Applegarth Care Home, as the care sector braces for crisis over the British government’s plans to reduce migration numbers, in Maidenhead, Britain, March 11, 2026. REUTERS/Isabel Infantes
Photographer: Isabel Infantes
Provider: REUTERS
Source: REUTERS
LIFESTYLE
7 min read
Experts ring alarm bells
These findings reveal a stark truth – the UK’s health is going backwards. The lights on the dashboard are flashing red. More people than ever before are living with chronic health conditions.
Dr JENNIFER DIXON, HEALTH FOUNDATION’S CHIEF EXECUTIVE
Caption: Maribel Ezcurra, 77, a retired milling machine mechanic, practices tai chi with fellow seniors in a park in the Playa neighborhood of Havana, Cuba, Wednesday, April 15, 2026. (AP Photo/Ramon Espinosa)
Photographer: Ramon Espinosa
Provider: AP
Source: AP
Caption: Undated film still from Michael. Pictured: Jaafar Jackson as Michael Jackson on the set of the thriller video. See PA Feature SHOWBIZ Film Reviews. WARNING: This picture must only be used to accompany PA Feature SHOWBIZ Film Reviews. PA Photo. Picture credit should read: Lionsgate/Glen Wilson. All Rights Reserved. NOTE TO EDITORS: This picture must only be used to accompany PA Feature SHOWBIZ Film Reviews.
Photographer: Lionsgate/Glen Wilson. All Rights Reserved.
Provider: Lionsgate/Glen Wilson. All Rights Reserved
Source: PA
Copyright: PA
FILM
Michael smashes box office records
Audiences were undeterred by widespread critical panning, turning out in their droves for the opening weekend of the controversial Michael Jackson biopic.
This comes seven years after Leaving Neverland, the documentary about Jackson’s alleged sexual abuse of children.
Audiences defy critical consensus
Michael shattered the box office record for a biopic opening weekend.
Worldwide, it raked in $217m (£160m).
But critics uniformly criticised the film for misrepresenting his controversial life and legacy.
FILM
5 min read
It’s a family affair
The singer’s nephew, Jaafar Jackson, plays the titular role alongside Colman Domingo as his father, Joe.
Despite recent high-profile allegations of child sexual abuse, Jackson’s popularity endures.
Caption: This image released by Lionsgate shows, from left, Judah Edwards as Young Tito, Jaylen Hunter as Young Marlon, Juliano Krue Valdi as Young MJ, Nathaniel McIntyre as Young Jackie and Jayden Harville as Young Jermain in a scene from “Michael.” (Glen Wilson/Lionsgate via AP)
Photographer: Glen Wilson
Provider: AP
Source: Lionsgate
Copyright: ? 2025 Lionsgate
Caption: HOLLYWOOD, CALIFORNIA – APRIL 20: (L-R) Colman Domingo and Jaafar Jackson attend the premiere of Lionsgate’s “Michael” at Dolby Theatre on April 20, 2026 in Hollywood, California. (Photo by Emma McIntyre/WireImage)
Photographer: Emma McIntyre
Provider: WireImage
Source: WireImage
Copyright: 2026 WireImage
A ‘wildly incendiary’ adaptation
Caption: BERLIN, GERMANY – APRIL 11: Jaafar Jackson speaks onstage during the ???Bringing MICHAEL to the Screen” panel at the “Michael” Global Fan Celebration at Uber Eats Music Hall on April 11, 2026 in Berlin, Germany. (Photo by Andreas Rentz/Getty Images for Universal Pictures)
Photographer: Andreas Rentz
Provider: Getty Images for Universal Pictu
Source: Getty Images Europe
Copyright: 2026 Getty Images
The i Paper‘s film critic, Francesca Steele, argued the flick should never have been made.
Steele’s review characterised the film as an obvious attempt to rehabilitate the star’s reputation.
Caption: This image released by Lionsgate shows Colman Domingo as Joe Jackson in a scene from “Michael.” (Glen Wilson/Lionsgate via AP)
Photographer: Glen Wilson
Provider: AP
Source: Lionsgate
Copyright: ? 2026 Lionsgate
Caption: Undated film still from Michael. Pictured: Jaafar Jackson as Michael Jackson. See PA Feature SHOWBIZ Film Reviews. WARNING: This picture must only be used to accompany PA Feature SHOWBIZ Film Reviews. PA Photo. Picture credit should read: Lionsgate/Kevin Mazur. All Rights Reserved. NOTE TO EDITORS: This picture must only be used to accompany PA Feature SHOWBIZ Film Reviews.
Photographer: Lionsgate/Kevin Mazur. All Rights Reserved.
Provider: Lionsgate/Kevin Mazur. All Rights Reserved
Source: PA
Copyright: PA
She added that the film was not only “misrepresentative” but also “wildly incendiary”.
Reeves announced at the last Budget that the maximum amount you can save into a cash ISA each year will fall from £20,000 to £12,000 from April 2027.
It will still be possible to put the full £20,000 into a stocks and shares ISA, or to split savings between the two accounts, the Treasury has promised.
The move is intended to encourage savers who are putting away relatively large sums to invest their money in the stock market and other financial instruments that are riskier than cash but tend to produce much better returns, giving them a larger retirement pot and boosting UK economic growth.
But the detailed rules that will determine which investments will be allowed have not yet been published, amid confusion over how to stop people diverting money above the £12,000 limit into “cash-like” investments intended to mimic the low but reliable returns offered by a savings account.
It has also emerged that the new regime will make a net of £100m for the Treasury over five years, because some savers are expected to keep their money in cash and take a tax hit on the interest, rather than moving it into a stocks and shares ISA. Estimates slipped out by the Treasury show a gain of £5m in the next financial year, rising each year to a maximum of £45m in 2030-31.
The full rules will be subject to public consultation, but finance industry insiders say the Government has been slow to produce detailed proposals. A source said: “The whole process has been weird. They clearly don’t understand retail investing.”
Dame Meg Hillier, the Labour MP who chairs the influential Treasury Committee in the House of Commons, told The i Paper: “When the Government’s planned ISA reforms were announced, it wasn’t clear how these changes could be applied in the real world. It’s deeply concerning that almost six months later, there is still no clarity.
“I have been pressing the Treasury on what they mean by the ‘cash-like’ holdings which will be banned from stocks and shares ISAs, but no answers have been forthcoming.
“I support the Government’s ambition to get people investing their money for better returns over the long term. The best way to put people off investing, however, is by creating complexity and confusion in the system. Unfortunately, that is the situation we are in. If the Treasury is going to make these changes and ensure they are well understood by industry and consumers before next April, they need to start making progress. If they don’t, they risk putting people off investing their savings.”
Sir Mel Stride, the shadow Chancellor, said: “Rachel Reeves is punishing hardworking people for doing the right thing: saving for a home, for their family, or for a secure retirement. The ISA system works well – helping millions of people save and invest for their future without fear of unfair taxation.
“Labour’s plan to slash the ISA allowance is nothing short of a savings tax. It would hit ordinary people, undermine confidence, and send a terrible message: that under Labour, saving responsibly will be penalised.”
A Government spokesman said: “Overall, the savings package at the Budget does not raise revenue – and the vast majority of savers will continue to pay no tax on their savings.
“These reforms are about getting more people investing for better long‑term returns. The Treasury and HMRC are working at pace with industry on the detailed rules, including anti‑circumvention, and will update on next steps in due course.”