Rumours are swirling John, that Rachel Reeves might slash the tax-free cap on cash ISAs - after meeting with a handful of big bank executives.

The Chancellor is being lobbied by big city firms to cut the allowance so that savers are pushed into moving their money into riskier stocks and shares. No one should be forced to gamble their savings to help rake in *even more* profits for the big banks. 

Tell Rachel Reeves to #ProtectCashISAs, add your name in less than 60 seconds by hitting the button below!

The Chancellor is reportedly considering cutting the maximum amount people can save in a cash ISA from £20,000 to £4,000. [1] 

Cash ISAs (individual savings accounts) are the most popular kind of savings account in the UK. Tax-free and low-risk, they help 18 million of us to save billions for a rainy day, retirement, or special occasions. But no matter what we’re saving for, we shouldn’t be punished for not gambling our money on riskier alternatives, like stocks and shares, if we don’t want to. 

Reducing the cash ISA limit - while keeping the stocks and shares ISA allowance the same - would unfairly push people with little savings into making riskier investments, when savings should all be treated the same.

And we’re not the only ones concerned. The Building Societies Association have also contacted Rachel Reeves asking her to reconsider. [2] Every extra signature will help get our voices heard together.   

If the government is looking for more tax revenue, they could start with the big banks themselves. Following another record year of profits in 2024, we calculated a windfall tax on the big four banks would bring in £15 billion alone. [3] 

The banks have made these billions due to years of higher interest rates, while the cost of living crisis rages on. A tax on banks is a much fairer place to start than taxing the accounts of ordinary savers. 

After u-turning on bankers bonuses, we can’t let Labour bend to the will of big banks again. Tell Rachel Reeves not to slash the cash ISA limit and save our savings now!

Thank you, 

Hannah, Positive Money

Notes:

[1] The Guardian: Savings providers vow to fight any attempt to cut cash Isa limit to £4,000

[2] Press release: The Building Societies Association calls on the Government to save cash ISAs

[3] Positive Money: Windfall tax on bank profits could raise £15bn

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