Reeves' ISA review

slinger2

But she didn't say that the £20k limit on Cash ISAs will stay the same.

Alpine_Star

slinger2 said:

But she didn't say that the £20k limit on Cash ISAs will stay the same.

You're right and if you listen to her she actually said the £20k limit won't change on 'investments'. CASH ISA's weren't specified at all in the question or the answer.

Fast forward to 33.40 Newscast - Brexitcast: The EU-UK Deal (and our Rachel Reeves interview) - BBC Sounds

MeteredOut

Alpine_Star said:

Sounds like the major banks talked her out of it.

Typical sloppy (bordering on ignorant) journalism where the headline does not match what was actually said.

VNX

bristolleedsfan said:

https://www.telegraph.co.uk/business/2025/05/19/reeves-backs-down-on-plans-to-cut-cash-isa-limit/

"Speaking to the BBC on Monday, Ms Reeves said: “I’m not going to reduce the limit of what people can put into an Isa, but I do want people to get better returns on their savings, whether that’s in a pension or in their day-to-day savings"

Once again the hype panic any hysteria comes to nothing 

ColdIron

This is the Telegraph article (for those that can read it)

There is a critical difference between the heading in the image above (which appears to be a misquote and without a source) and the heading in the Telegraph piece: the word Cash

Reeves backs down on plans to cut Isa limit

She has been clear from the outset that the ISA limit is not in her sights, it is the cash part of it that is unknown and nothing in the body of the article provides any change to that. There has been no back down, there has been no change

Speculation compounded by misquoting, deliberate or otherwise

Care to reveal the source so we can avoid that publication?

Edit: If you look at the actual link, I think there may have been some late modifications

https://www.telegraph.co.uk/business/2025/05/19/reeves-backs-down-on-plans-to-cut-cash-isa-limit/

Kim_13

VNX said:

bristolleedsfan said:

https://www.telegraph.co.uk/business/2025/05/19/reeves-backs-down-on-plans-to-cut-cash-isa-limit/

"Speaking to the BBC on Monday, Ms Reeves said: “I’m not going to reduce the limit of what people can put into an Isa, but I do want people to get better returns on their savings, whether that’s in a pension or in their day-to-day savings"

Once again the hype panic any hysteria comes to nothing 

She has said UK adults will still get a £20,000 ISA allowance, but that the cash element of that might be restricted to as little as 20% of it was what was panicing people. That hasn’t gone away, given she hasn’t said cash will be at least 50% of the total (or similar.) It surprises me that the same papers who were reporting on the cut are so busy reporting this as a climbdown that they’ve missed that that isn’t what she’s done. If she wants people to get better returns, then reducing the cash allowance must still be on the table.

Albermarle

 but that the cash element of that might be restricted to as little as 20% of it was what was panicing people. 

AFAIK she has never mentioned those £4K/20% figures. It was only ever speculation in the media trying to whip up a bit of panic.
Or it could have been a deliberate leak, so when it is a bigger figure but less than £20K, it will not look so bad. 

Alpine_Star

ColdIron said:

Care to reveal the source so we can avoid that publication?

Front page of today's Telegraph!

Beddie

MA260 said:

If you want to boost the UK stock markets they should reduce the Share transaction tax which is higher than most major stock markets. This would boost the Uk stock market and also mean pension funds investing in UK would perform better.  That is one of the reasons funds in Uk perform so poorly. They are charged 0.50% for each share purchase, then a lot of the funds charge 0.8% charges per year and on top of that the providers charge 0.40% annual fees, so that it lot of money going in fees if you buy uk shares or funds.

Or at least they could fix it so that shares brought inside Stocks Isa are not charged the 0.5% tax

That would help Investment Trusts too, as purchases attract 0.5% tax, unlike funds and ETFs.

wmb194

Beddie said:

MA260 said:

If you want to boost the UK stock markets they should reduce the Share transaction tax which is higher than most major stock markets. This would boost the Uk stock market and also mean pension funds investing in UK would perform better.  That is one of the reasons funds in Uk perform so poorly. They are charged 0.50% for each share purchase, then a lot of the funds charge 0.8% charges per year and on top of that the providers charge 0.40% annual fees, so that it lot of money going in fees if you buy uk shares or funds.

Or at least they could fix it so that shares brought inside Stocks Isa are not charged the 0.5% tax

That would help Investment Trusts too, as purchases attract 0.5% tax, unlike funds and ETFs.

Unlikely though. It’s a golden goose for the Treasury - c.£3.5bn a year - and other broke governments have been increasing their FTTs e.g., recently France’s equivalent was increased to 0.4%.