Investec Save today welcomed the Chancellor’s Mansion House announcement, which confirmed the government will preserve the full £20,000 cash ISA allowance while introducing broader reforms to encourage more investment into UK markets.
The government’s ambition to unlock capital and direct it into high-growth sectors is a welcome signal of confidence in the UK economy. At the same time, by retaining the full cash ISA limit, the Chancellor has recognised the importance of giving savers the tools they need to build financial resilience and prepare for life’s unexpected events.
David Hunt, Head of Savings at Investec Bank, said:
“This is a smart, balanced outcome. The UK absolutely needs more capital flowing into its markets – but it also needs to protect the right of individuals to save in cash when certainty matters most.
Millions of savers use cash ISAs to build up short-term security for things like a first home, family emergencies or periods of uncertainty. Keeping the full allowance in place ensures that growth and resilience can go hand in hand.
With UK households holding over £300 billion in cash ISAs, the government’s desire to encourage long-term investment is understandable. But many of these savers are not risk-takers – they are planners. They choose the predictability of cash savings precisely because they are planning for life events or unexpected costs.”
