Rachel Reeves has put her plans to reform cash ISAs on hold after speculation that she was considering reducing the allowance for tax-free cash savings was met with criticism from banks and building societies.
Savers have a £20,000 annual allowance which can be split across ISA types, but the most frequently used version is the cash ISA, which gives people a tax-free savings account. However, the government wants to encourage more people to start investing, to generate better long-term returns.
