Savers rush to beat Reeves's ISA shake-up

BRITONS are piling billions into Cash ISAs amid growing speculation that Chancellor Rachel Reeves will slash the annual tax-free savings allowance.

- By Harvey Jones

Reeves is rumoured to be considering cutting the £20,000 annual allowance to as little as £5,000 or £4,000, as she looks to encourage people to put more money into stocks and shares instead.

The cut may be announced in her Mansion House speech on July 15 and although not yet confirmed, savers aren’t taking any chances.

New Bank of England figures show savers tucked away £3.9billion into Cash ISAs in May alone, continuing a recent rush of deposits. This follows a record April when new Cash ISA deposits hit £14billion in the first month of the financial year, the highest figure since ISAs were launched in 1999.