Chancellor Rachel Reeves is contemplating reducing the annual cash ISA allowance from £20,000 to £4,000 following discussions with City executives at 11 Downing Street aimed at increasing investments from UK savers.
In 2024, a record £49.8 billion was deposited into cash ISAs, marking a 6% increase from 2023, driven by escalating interest rates. Fund managers have proposed streamlining the ISA system to encourage more investment from UK savers, as deposits into cash ISAs significantly rose in 2025 compared to the previous year.
Reeves reaffirmed her dedication to accelerating economic growth and improving individual savings through her Plan for Change.