Chancellor Rachel Reeves is trying to get savers to invest in domestic stocks and shares by overhauling the current cash ISA regime.
A culture of retail investing
The Treasury wants savers to channel more money from tax-free cash into UK stocks.
The individual annual tax-free investment cap stands at £20,000. There is £300 billion invested in cash ISAs across the UK
Reeves is expected to call for getting the right balance between cash and equities. The Chancellor is expected to push for a retail investing culture to a scale akin to the US.
Regain certainty – but not at punters’ expense
The London Stock Exchange Group is keen to use money held in cash ISAs to support London’s shrinking equities market. Many City firms are urging Reeves to scale back tax breaks on cash ISAs.
It’s been a rocky ride for investors over the last few weeks following Trump’s “liberation day” tariffs. City firms are understandably keen to regain certainty and solid long-term profitability – but they shouldn’t be allowed to do this at the expense of individual UK investors.
