In a dramatic turn amid economic uncertainty, Chancellor Reeves appears ready to drastically curtail the popular £20,000 Cash ISA allowance. With the economy reportedly collapsing on her watch, Reeves is said to be desperate for any measure that might stimulate growth—even if it means shifting the burden onto savers. A report in The Daily Telegraph now predicts that the Chancellor could slash this tax break by a staggering 80%, a move that has set alarm bells ringing among financial experts and everyday investors alike.
Under the current rules, every adult can invest up to £20,000 a year in either a Cash ISA or a Stocks and Shares ISA, with more than half of savers opting for the cash option. Cash ISAs are particularly favored by pensioners, who rely on the tax-free interest to supplement their state pensions, reported the Express.
