Reeves Abandons ISA Limit Cut, Plans Review

Chancellor Rachel Reeves has confirmed that the annual £20,000 tax-free ISA limit will remain unchanged, abandoning earlier proposals to reduce the allowance to as low as £4,000 in an effort to boost stock market investment and economic growth. This decision follows strong opposition from the financial sector and millions of savers. Reeves continues to encourage greater investment in equities over cash or bonds but has reiterated her commitment to the current ISA limit. Financial experts, including Martin Lewis, warn that further changes to cash ISA allowances or other reforms remain possible. The Treasury will conduct a review of the ISA system before the Autumn Budget to consider additional ways to foster a stronger investment culture. Around 18 million Britons use cash ISAs to save tax-free, while officials remain concerned about the effects of large cash holdings on the London Stock Exchange.