Reeves fails to confirm Cash ISA allowance

CHANCELLOR Rachel Reeves has pledged to protect the £20,000 annual ISA allowance, but Cash ISA savers are being warned not to breathe too easily just yet.

- By Harvey Jones

Reeves calmed fears that the overall tax-free ISA allowance could be slashed saying: “I’m not going to reduce the limit of what people can put into an ISA.”

But her statement stopped short of guaranteeing that the full £20,000 will continue to be there for Cash ISAs specifically.

This follows persistent reports Reeves is considering cutting the limit to just £4,000, to nudge more savers towards investing in UK stocks.

The idea was floated during Treasury meetings with investment managers who argued that shifting more cash into equities would boost UK economic growth.

Industry experts warn that a cut to the Cash ISA allowance is still on the cards, so savers shouldn't celebrate just yet.