Rachel Reeves is considering reducing the tax-free limit on cash ISAs to encourage people to invest in stock and shares, but she should go even further, says Emma Revell

It is one of the most popular and best understood savings tools available for Brits, but there could be a big shake up coming for the humble ISA.

The Chancellor has indicated she may make changes to Cash Individual Savings Accounts in order to “get the balance right” between cash and equities – the problem being the overwhelming popularity of the former. The most likely change would be to dramatically reduce the tax free limit for cash ISAs to £4,000 – down from £20,000 – while, one assumes, protecting the higher limit for Stocks and Shares ISAs.

Such a move might be unpopular with the general public – the Daily Mail have already launched a “Hands Off Our Cash ISAs” campaign and the Building Societies Association warned it could restrict funds available for mortgage lending – but City AM readers will likely agree that Rachel Reeves should encourage more people to move their........

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