If Cash ISAs are ended by Government.

Alpine_Star

There's similar reporting in the Guardian.

No cash Isa shake-up in spring statement, but Reeves still considering cuts | Isas | The Guardian

bristolleedsfan

Alpine_Star said:

There's similar reporting in the Guardian.

No cash Isa shake-up in spring statement, but Reeves still considering cuts | Isas | The Guardian

And  https://www.thisismoney.co.uk/money/saving/article-14494329/Cash-Isa-rules-WONT-change-spring-statement-Chancellor-isnt-ruling-shake-later-year.html

https://citywire.com/new-model-adviser/news/reeves-still-plans-cash-isa-reforms-but-not-in-spring-statement-reports/a2461604

https://www.express.co.uk/finance/personalfinance/2026632/cash-isa-update-rachel-reeves

intalex

Today is the day... when little unexpected is announced??

In case decision-makers are fishing for ideas, here's one - how about allowing carry forward of unused annual personal allowance and annual ISA allowance in the same way as it's allowed for pension allowance (up to 3 years earlier).

slinger2

intalex said:

Today is the day... when little unexpected is announced??

In case decision-makers are fishing for ideas, here's one - how about allowing carry forward of unused annual personal allowance and annual ISA allowance in the same way as it's allowed for pension allowance (up to 3 years earlier).

I thought she was tightening up on the rules, not loosening them. I suppose it could be in conjunction with a big cut in the ISA allowance. 

SnowMan

Only mention of ISAs in the Spring Statement was this.

https://assets.publishing.service.gov.uk/media/67e3ec2df356a2dc0e39b488/E03274109_HMT_Spring_Statement_Mar_25_Web_Accessible_.pdf

2.65 The government is looking at options for reforms to Individual Savings Accounts that get the balance right between cash and equities to earn better returns for savers, boost the culture of retail investment, and support the growth mission. Alongside this, the government is working closely with the Financial Conduct Authority to deliver a system of targeted support to give people the confidence to invest.

Shylock_249

If Rumor Control is correct and Mrs Reeves, in the future, decides to reduce the current allowance of 20k cash to 4k cash and 16k in Stocks and Shares (S&S), presumably those S&S should be in UK companies and NOT in Japanese Small Companies, American Recovery etc, otherwise there would be NO benefit to the UK economy?

 I wonder how many people who have habitually saved 20k each year will take up the offer and invest their 16k into UK S&S ISAs bearing in mind the Office for Budget Responsibility predicts just 1% growth this year.

 My wife recently converted her two S&S ISAs into Cash ISAs which she took out more than 23 years ago.  They certainly did better than ISA cash savings.

 For myself and my wife we are both in our 70’s and there is NO way we will invest in S&S again, solely because of our ages.

 I wonder if Mrs Reeves has considered that those who have saved in cash ISAs that their money will been used by banks/building societies as loans to small business etc that want to expand or start their business and improve growth in the economy? 

 Is it for consideration that banks/building societies will NOT accrue as much money as they did previously and some of them might go out of business or experience difficulties with cash flow?

 

surreysaver

If people wanted to put their money in S&S instead of cash ISAs, they would already be doing it.
All people would do instead, is put their savings in non-cash ISAs 

wmb194

surreysaver said:

If people wanted to put their money in S&S instead of cash ISAs, they would already be doing it.
All people would do instead, is put their savings in non-cash ISAs 

And consider cash-like alternatives available within in a S&S Isa e.g., gilts and money market funds.

eskbanker

surreysaver said:

If people wanted to put their money in S&S instead of cash ISAs, they would already be doing it.
All people would do instead, is put their savings in non-cash ISAs 

Such as S&S ISAs? That's the theory behind the rumoured change....

intalex

eskbanker said:

surreysaver said:

If people wanted to put their money in S&S instead of cash ISAs, they would already be doing it.
All people would do instead, is put their savings in non-cash ISAs 

Such as S&S ISAs? That's the theory behind the rumoured change....

Perhaps meant cash non-ISAs??