Budget 2025: Rachel Reeves to Cut Cash ISA Limit to £12,000 as Banks Launch Last-Minute Rate War
Published: Tuesday 25 November 2025 UK savers are waking up to a double shock: reports that Chancellor Rachel Reeves will slash the annual cash ISA allowance from £20,000 to £12,000 in tomorrow’s Autumn Budget, and a frantic scramble among banks to lure customers with higher ISA interest rates before the rules change. Financial Times+2The Independent+2 According to multiple briefings overnight, the change will sit at the heart of a tax-heavy Budget designed to close a roughly £22 billion hole in the public finances while nudging households away from cash and into investments in the UK stock market. The Independent+1 Key points