28/10/2026
Chancellor axes Reeves' plan to cut tax-free cash ISA allowance
John Healey now announces he will not carry out a plan announced by his predecessor, Rachel Reeves.
The chancellor says he is taking a "new approach today" in order to encourage more people on "ordinary incomes to save and invest".
Healey says: "I will not go ahead with the cut to the tax-free amount that people can put into a cash ISA. The limit will stay at £20,000 per year, tax-free, for people of all ages.
"And to make investment accessible, I will work with the sector to create a new 'Starter ISA' to reward first-time investors."
Reeves has originally announced the tax-free allowance on cash ISAs would be reduced to £12,000 to encourage people to invest their money in stocks and shares ISAs, but this is now not going ahead.