Healey reported to plan reversal of Cash ISA cut

Chancellor John Healey is reported to be planning to reverse the scheduled reduction in the annual Cash ISA allowance for people under 65, but the change has not been confirmed. The reported plan would preserve the current £20,000 tax-free Cash ISA limit rather than allowing it to fall to £12,000 from April 2027. The proposed reversal was reported ahead of Healey’s Budget on Wednesday, October 28. The reported account says he considers a lower cash allowance an ineffective way to encourage investment in stocks and shares, and would prefer to explain the benefits of equity investing to savers. The Budget announcement will determine whether the existing policy changes. Under the government’s previously announced plan, people under 65 would be limited to £12,000 in annual Cash ISA contributions from April 2027. The overall ISA allowance would remain £20,000, with savers needing to put any amount above the cash limit into other ISA options, such as stocks and shares, to use the full allowance. The change was announced by former Chancellor Rachel Reeves to encourage investment in the stock market. HM Revenue and Customs figures show adults subscribed £135.7 billion to ISAs in the...