Chancellor Puts on Hold Plan to Cut Maximum Cash Isa Saving

Rachel Reeves has put on hold plans to reduce the amount savers can put into tax-efficient cash Isas, after lobbying from banks, building societies and consumer groups.

- Hilary Osborne

The chancellor had been expected to announce changes to the accounts in her Mansion House speech next Tuesday, with cuts to the £20,000 savings limit thought to be likely.

Reeves is keen to encourage savers to consider stock market investments, where bigger returns are possible but there is also more risk.

It had been suggested that the limit on cash Isas could be cut to £5,000.

However, building societies had argued that the money deposited by savers was vital to fund mortgages, and that slashing the limit would reduce the number of homebuyers they could help.