Plans for Cash ISA changes put on hold
Chancellor Rachel Reeves will not make any changes to Cash ISAs in her upcoming Mansion House speech, in a move that has been welcomed by the industry.
The Chancellor was rumoured to be considering possible changes to the Cash ISA allowance to incentivise UK savers to invest in stocks and shares, but will now take more time to carefully consider any changes.
Buildings Societies Association chief executive Robin Fieth said this announcement was a sign that the Chancellor was receptive to feedback from banks and building societies.
“We welcome today’s announcement that the Chancellor will take time to carefully consider any changes to Cash ISAs. This is a good example of HM Treasury actively listening to the industry and committing to a consultation process rather than making hasty decisions,” Fieth said.
“Over recent months we have shown that Cash ISAs serve a broad range of practical purposes, from building financial resilience to saving for a first home to managing finances in retirement. These are not idle funds; they provide a vital role for consumers while financial organisations use these funds to support mortgage and other lending.”
“We look forward to working collaboratively with the Government to find an approach, which fosters a strong investment culture, whilst also recognising and supporting the needs of those for whom investing may not be suitable,” Fieth added.
It is important to note that while a decision on changes to Cash ISAs has been put on hold, adaptions to the current system have not been ruled out. The Chancellor may decide to implement changes to Cash ISAs after further consideration and consultation with the industry.
UK economy shrinks with growth proving evasive
This announcement follows the news that the UK’s GDP fell by 0.1% in May 2025, which will put the government’s plan to balance spending with growth under further pressure.
This fall was largely driven by production output and construction, with services growing marginally over the month.
With growth proving evasive and a number of major spending cuts reversed in response to backbench rebellion, the government may decide to once again raise taxes again to replenish the public coffers.
Reeves is expected to outline a number of plans for driving investment into the UK economy in her Mansion House speech on Tuesday, 15 July.
