Chancellor Rachel Reeves considers reducing cash ISA limit to boost stock investments

Chancellor Rachel Reeves is considering reducing the annual cash ISA limit from £20,000 to £4,000. This change aims to encourage more investment in stocks and shares, promoting a culture of retail investing in the UK. The current cash ISA limit has been in place since 2017. Over 18 million people hold cash ISAs, totaling around £300 billion in savings. Financial providers are preparing to oppose any reduction in the deposit limit. Concerns have been raised about the impact of lowering the cash ISA limit on lending and mortgage prices. Trade groups warn that less money in cash ISAs could restrict funds available for loans to households and businesses.