Cash Isas: Rachel Reeves pauses plans to reduce amount savers can put in | Cash Isas

After lobbying from banks, building societies and consumer groups, Rachel Reeves put plans to reduce the amounts that savings can put in fertile cash ISAs.

The chancellor was expected to announce the changes in the accounts of the mansion next Tuesday, and interrupted the savings limit of £ 20,000, which was thought to be in the heart of plans.

Reeves want to encourage the stock market investments that the British protectors are possible, but there is more risk. It was suggested that the border of cash ISAs could be cut up to £ 5,000.

However, building societies claimed that the money deposited by the preservatives is vital to finance mortgages and that the limit will reduce the number of hosts they could help.

Reeves Plans did not leave Financial Times, who first reported the news, said that Isas Isas wanted more time to consult the sector completely.

The UK Guarders can invest up to £ 20,000 in the ISAs in ISAs and spread money to cash versions with savings accounts that offer interest or growth and income. Returns from them are tax -free.

Tax -exempts were introduced in 1999. More than 18 million people have cash ISA, and their accounts are estimated to be 300 billion pounds.

Matthew Carter, President of Savings and Mortgage at Coventry Building Society, said, “Millions of protective relaxation will be able to breathe if he decided to change the route in Cash Isas.” He said.

Carter said that the cutting of the border would not be all sticks and carrots ”.

“The ambition to encourage further investment in the UK stocks is a good thing. But it is not always the appropriate choice to take extra risks with longer -term award hope. Many people, especially for a home deposit, do not require or want the uncertainty of the stock market.”

The chancellor is expected to use Tuesday’s speech to promise consumers more advice and support to promote more advice and support to invest in stocks and stocks.

In the UK, many consumers choose cash through more risky investments – the figures from the investment company Aberdeen show that they have an average of 15% of their assets in cash and stocks. This is compared with 13% for each French consumers and 10% and 33% in the USA, respectively.

The chancellor’s speech will come at a time when the Treasury encounters difficult decisions on how to balance public finances. On Friday, the last monthly GDP figures showed that the UK economy made a contract at a rate of 0.1%in May.

A Treasury spokesman said: “Our ambition is to ensure that people provide the best benefits of difficult savings and make more investment in the UK economy.” He said.