Hands Off Our ISAs! That’s the furious message City investment firms are sending to Chancellor Rachel Reeves after it emerged she’s eyeing a cut to the £20k tax-free ISA allowance – a move that could hit 18 million savers, including pensioners.
Reeves is reportedly mulling the cut to cash ISAs to push Brits towards investing in shares, but the idea has gone down like a lead balloon with UK banks and building societies.
Top bosses from HSBC, NatWest, and Lloyds warned Treasury minister Emma Reynolds this week that the move would hurt savers, raise bills, and do little to spark economic growth.
“Leave ISAs Alone!” cried Stuart Haire, boss of Skipton Building Society. “Messing with ISAs is the wrong tool and could hit building societies hard,” he told The Telegraph, pointing out that 40% of mortgage funds come from ISA savings.
Shadow Business Secretary Andrew Griffith didn’t hold back either:
“If Reeves thinks savers should be taxed more, she must have sunstroke.”
He slammed the plan as a “mad, penny-pinching grab” by a desperate Treasury.
Even Reynolds herself admitted the backlash has been fierce, telling building society leaders in Birmingham that “many of us rely on cash savings” as a lifeline in tough times.
The Treasury insists no decision has been made – but savers and bankers alike are braced for battle.
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