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Chancellor reverses plan to cut cash Isa allowance to £12,000
Chancellor John Healey has scrapped plans to cut the annual cash Isa allowance from £20,000 to £12,000 for savers under 65.
Chancellor John Healey has reversed his predecessor Rachel Reeves's decision to cut the cash Isa allowance from £20,000 to £12,000 for savers under 65, a change that was due to take effect in April 2027. Healey believes education about investing in stocks and shares is a better approach than reducing tax breaks on savings. The reversal was welcomed by banks and building societies, which rely on deposits to fund loans, and by investment industry figures who had warned the cut would backfire. Cash Isas are the UK's most popular savings product, with £135.7 billion subscribed in the tax year 2024-25. Healey also announced plans for a new 'Starter Isa' to reward first-time investors.
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