Rachel Reeves urged not to go ahead with Cash ISA cut by building society bosses in open letter

Yorkshire Post

Building society bosses have joined forces to urge Rachel Reeves to retain annual Cash ISA limits at its current £20,000. The chief executives of the Yorkshire and Leeds Building Societies, as well as Skipton Group, are among more than 50 financial experts to sign an open letter to the Chancellor urging her not to go ahead with a cut to the current limit.  The Financial Times has recently reported Ms Reeves is expected to set out a cut to Cash ISA limits in next week’s Mansion House speech as part of her efforts to direct more investment towards the British stock market.  The newspaper reported that, according to a Whitehall figure, discussions were still taking place about the precise limit that will be set for Cash Isas.  Mr Reeves has previously said she will not reduce the overall £20,000 annual limit for ISA deposits but added she does “want people to get better returns on their savings”. Read the full story here: https://www.yorkshirepost.co.uk/business

Transcript

00:00Is Rachel Reeves about to cut the amount of money you can put in a cash ISA each year?

00:06It appears that is the case. I'm Chris Byrne, Yorkshire Post, Business and Features Editor,

00:10and I just thought I'd update you on where things stand in relation to this kind of rumbling debate

00:16that's been going on about the future of cash ISAs for a few months.

00:20The Financial Times has reported that next week in her Mansion House speech,

00:25Rachel Reeves is going to go ahead with a cut to the amount that you can put in a cash ISA each year

00:29currently it's £20,000 tax-free.

00:33Miss Reeves has said that she wants to keep the £20,000 limit for overall ISA allowances,

00:39but the speculation is that the amount you can save into a cash ISA is going to be considerably cut,

00:45and the aim of this from the government side is that we'll encourage people to invest in stocks and shares,

00:51and particularly the UK stock market, with the hope that that helps British listed companies to expand and grow,

00:59helps the economy in the meantime.

01:02However, there's been a kickback, a real kickback against this idea from lots of savers who like having the guaranteed returns

01:09that come with a cash ISA, rather than kind of the riskier approach of a stock market investment.

01:14Building Society bosses have joined forces today to write an open letter to Rachel Reeves urging her not to go ahead.

01:24They say that cash ISAs are particularly helpful in providing funds for them so they can provide affordable loans and mortgages to their customers,

01:33and they warn that if this change goes ahead, as has kind of been mooted, that situation, those calculations are going to be badly impacted.

01:42So, interest to hear people's thoughts. Where do you stand? Should the cash ISA limit remain as it is?

01:47Or is Rachel Reeves right to pursue a policy that will hopefully result in more investment in the UK stock market and the UK companies on there?

Category

Transcript

Comments

Recommended