Budget 2025: Rachel Reeves to Cut Cash ISA Limit to £12,000 as Banks Launch Last-Minute Rate War
Chancellor Rachel Reeves is expected to cut the annual cash ISA allowance from £20,000 to £12,000 in Wednesday’s Autumn Budget, according to multiple briefings. Banks have raised ISA interest rates ahead of the change. The overall ISA limit will remain £20,000, with no new cap on stocks and shares ISAs. The move aims to close a £22 billion budget gap and steer savings toward UK equities.