{"id":223885,"date":"2025-10-25T02:31:08","date_gmt":"2025-10-25T02:31:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/223885\/"},"modified":"2025-10-25T02:31:08","modified_gmt":"2025-10-25T02:31:08","slug":"reeves-should-not-cut-cash-isa-allowance-mps-say","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/223885\/","title":{"rendered":"Reeves should not cut cash ISA allowance, MPs say"},"content":{"rendered":"

Earlier this year, the chancellor was thought to be mulling a reduction to the allowance for tax-free cash savings in a bid to encourage people to put money into stocks and shares instead and boost the economy.<\/p>\n

Those plans were put on hold after strong opposition from banks, building societies and consumer campaigners.<\/p>\n

Savers can put up to \u00a320,000 a year in Isas in savings and investments, to protect the returns from being taxed. <\/p>\n

The chancellor has said she intends to keep this limit in place, and it can currently be spread across products including cash Isas and stocks and shares Isas. <\/p>\n

The proposed change specifically relates to cash Isas, and earlier this month the Financial Times reported the chancellor was considering reducing their tax-free amount to \u00a310,000. <\/p>\n

The purpose behind this would be to encourage investment. <\/p>\n

The chancellor is facing a Budget shortfall of about \u00a322bn<\/a>, according to a recent estimate.<\/p>\n

She is expected to raise taxes or cut spending in her November Budget in order to meet her self-imposed fiscal rules of not borrowing to fund day-to-day spending and to get government debt falling as a share of national income by the end of this parliament.<\/p>\n

Cash Isas are the most widely used type of Isa. A total of \u00a3360bn is held in cash Isas across the country.<\/p>\n

The committee’s report concluded that “cutting the cash Isa allowance is unlikely to incentivise people to invest their cash in stocks and shares”.<\/p>\n

Chair of the Treasury Select Committee, Dame Meg Hillier, said: “This is not the right time to cut the cash Isa limit.”<\/p>\n

“The Committee is firmly behind the chancellor’s ambition to create a culture in the UK where savers are sensibly investing their money and getting better returns through well-informed financial decisions,” she said.<\/p>\n

“But we are a long way from that point.”<\/p>\n","protected":false},"excerpt":{"rendered":"Earlier this year, the chancellor was thought to be mulling a reduction to the allowance for tax-free cash…\n","protected":false},"author":2,"featured_media":223886,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[49,50,51,47,52,48],"class_list":{"0":"post-223885","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-headlines","9":"tag-news","10":"tag-top-news","11":"tag-top-stories","12":"tag-topnews","13":"tag-topstories"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/223885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=223885"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/223885\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/223886"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=223885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=223885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=223885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}