<\/p>\n
The popular savings product has been left intact<\/p>\n
The Chancellor has reversed his predecessor Rachel Reeves\u2019 plan to cut the Cash ISA allowance from \u00a320,000 to \u00a312,000 for those under 60.<\/p>\n
The proposals had been widely condemned for adding complexity to an already complicated ISA landscape without any evidence they would encourage more people to invest for the long-term.<\/p>\n
Paul Riseborough, a partner in KPMG UK\u2019s financial services consulting practice, comments: \u201cRetaining the \u00a320,000 cash ISA allowance will be welcome news for savers and lenders, particularly smaller building societies that rely heavily on cash deposits to fund mortgage lending.<\/p>\n
\u201cChanging the cash ISA allowance was never likely turn the UK into a nation of investors \u2013 87% of cash ISA holders confirmed they wouldn\u2019t switch to stocks and shares regardless of the lower cash limit.<\/p>\n
\u201cWhilst today\u2019s announcement also includes new ISAs aimed at first time buyers and potential investors, the constant changes to ISA rules risks detracting from one of the product\u2019s main benefits to consumers \u2013 its simplicity.\u201d<\/p>\n
However, Michael Healy, CEO of IG Consumer, said the Chancellor has \u201csquandered a golden opportunity to help British households build long-term wealth and get more money flowing into the businesses that drive our economy.\u201d<\/p>\n
He added: \u201cAt a time when Britain desperately needs growth, protecting tax incentives that encourage people to sit on cash rather than invest is a deeply misguided decision.<\/p>\n
\u201cCash ISA subscriptions surged by \u00a326.1 billion last year, more than four times the increase in Stocks & Shares ISAs, yet the Chancellor has chosen to reinforce the very savings culture that is holding Britain back.<\/p>\n
\u201cWorse still, IG modelling suggests phasing out Cash ISAs for new contributions could generate up to \u00a3610 million in additional annual tax revenue by 2032-33, without touching existing savings.<\/p>\n
\u201cThis Budget should have been about making Britain\u2019s money work harder for its people and its economy instead of\u00a0 defending a tax break that most savers don\u2019t need.<\/p>\n
\u201cThe Chancellor should have gone further by phasing out Cash ISAs for new contributions and redirecting those incentives towards helping households invest, build financial security and share in Britain\u2019s future growth.\u201d<\/p>\n
\t #Planned #cuts #ISA #allowances #goahead #Daily #Business<\/p>\n","protected":false},"excerpt":{"rendered":"
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