Chancellor reportedly set to reverse Isa allowance cut

Summarised from 3 outlets · Updated 28 Oct, 08:51 · Archive

Chancellor John Healey is reportedly planning to reverse the decision to cut the annual Isa allowance from £20,000 to £12,000. Former chancellor Rachel Reeves announced the reduction for savers aged under 65 in the autumn budget last year, with the change set to take effect in April 2027. She introduced it to encourage investment in the stock market.

Healey is said to believe the allowance cut was the wrong tool to persuade Britons to invest more in stocks and shares. He would rather look to educate savers on the benefits of equity investing, according to the Financial Times. Individual savings accounts are exempt from tax on interest, capital gains and income taxes, and are the most popular savings product in the UK.

Retail savings banks and building societies are expected to welcome the reported U-turn, as maintaining the flow of savings deposits helps provide them with funding to lend and strengthen their balance sheets.

How it is being reported

• Chancellor to ditch Rachel Reeves' attack on cash Isas with limit due to stay at £20,000 a yearJohn Healey is expected to abandon his predecessor Rachel Reeves' 'car crash' plans to cut the cash Isa allowance in his first Budget this afternoon.This is Money · 28 Oct, 08:45
• Chancellor set to U-turn on Isa allowance cut to £12,000 – reportsJohn Healey is said to believe the allowance cut was the wrong tool to persuade Britons to invest more in stocks and shares.Independent Business · 28 Oct, 08:16
• Chancellor set to U-turn on Isa allowance cut to £12,000 – reportsJohn Healey is said to believe the allowance cut was the wrong tool to persuade Britons to invest more in stocks and shares.Evening Standard · 28 Oct, 08:16

In this story: John Healey · Rachel Reeves · UK

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log