The Chancellor is considering lowering the annual tax-free allowance for cash Isas (Image: Getty)

       Banks have warned the Chancellor Rachel Reeves to abandon plans to cut the tax-free Isa savings allowance. Reeves is considering lowering the annual tax-free allowance for cash Isas in a bid to encourage more people to invest in shares.

       However, her plans, which would affect 18 million users, have gone down poorly with key figures in the city who have lobbied the Chancellor to “leave Isas alone”. Isas allow people to save up to ￡20,000 a year and earn tax-free interest or gains on your investments, meaning you get to keep more of your money. Stuart Haire, the Skipton Building Society chief executive, told The Telegraph that the Chancellor should “leave cash Isas alone”.

       Article continues below ADVERTISEMENT

       Who Charges the Most for Car Insurance In Nevada (Check Zip Codes)Insurance Auto Advice | Sponsored Sponsored

       Learn More

       Undo

       DON'T MISS

       Powered by

       HMRC alerts parents who had children between 1978 and 2010 about potential ￡5,000 back pay

       Comments

       Lloyds Bank offers competitive 6.25% interest savings account

       4 Comments

       'I'm a personal finance expert and here's my 4-point plan to save cash ISAs'

       Comments

       Savers have just two days to open savings account paying 5.37% - but there's a catch

       6 Comments

       NatWest blow for customers as it announces major change to accounts 'within weeks'

       12 Comments

       State pension age rise update as UK savers facing ￡10bn blow

       6 Comments

       Martin Lewis urges people with savings to do one 'key' thing today to protect their money

       Comments

       Cash ISA savers urged to make major change

       3 Comments

       Worrying new figures show how many UK pensioners 'don't have the money to last retirement'

       4 Comments

       Martin Lewis Premium Bonds advice on ￡1,000 savings tax risk cash ISA change

       2 Comments

       Personal tax allowance increase to ￡20,000 update 'in days' in Commons showdown

       301 Comments

       Rachel Reeves takes huge ￡50bn gamble on growth - and she's doing it with YOUR pension

       54 Comments

       Triple lock experts share their predictions for next year's state pension increase

       2 Comments

       Rachel Reeves slammed as world's super rich flee over tax crackdown

       4 Comments

       eToro IPO Goes Live on Nasdaq – Discover the IPO Buzz TodayeToro | Sponsored Sponsored

       Learn More

       Undo

       Rachel Reeves's Cash ISA raid shot down as banks say - ‘Hands off pensioners' money!'

       312 Comments

       Top six Cash ISAs with interest rates of up to 5.71%

       1 Comments

       Scarlett Johansson, 40, Shows Off Her Real Size In A New Vacation Photos33 Bridges | Sponsored Sponsored

       Undo

       Nationwide Building Society offers competitive 6.5% interest savings account

       2 Comments

       ￡20,000 income tax ruling as Parliament debates call for allowance hike

       43 Comments

       13 Oldest Hollywood Stars We Didn't Know Were Still AliveThe Latest Article | Sponsored Sponsored

       Undo

       HMRC urges Brits to ‘cash in' on forgotten ￡2,200 savings

       Comments

       Rachel Reeves told do these 3 things as UK economy in chaos after tax hikes

       30 Comments

       Chuck Norris: If You're Over 60, Avoid These 3 Foods Like The PlagueRoundhouse Provisions | Sponsored Sponsored

       Watch Now

       Undo

       HMRC alerts parents who had children between 1978 and 2010 about potential ￡5,000 back pay

       Comments

       Lloyds Bank offers competitive 6.25% interest savings account

       4 Comments

       Chelsea Clinton, 44, Drives Probably the Most Expensive Car in the World.Boite A Scoop | Sponsored Sponsored

       Undo

       'I'm a personal finance expert and here's my 4-point plan to save cash ISAs'

       Comments

       Savers have just two days to open savings account paying 5.37% - but there's a catch

       6 Comments

       Why Are These Companies Overcharging You For Car Insurance?OTTO Insurance | Sponsored Sponsored

       Read Now

       Undo

       NatWest blow for customers as it announces major change to accounts 'within weeks'

       12 Comments

       State pension age rise update as UK savers facing ￡10bn blow

       6 Comments

       Easy Trick To Protect Your Home From Bed Bug (Few Know This)swissklip | Sponsored Sponsored

       Undo

       Martin Lewis urges people with savings to do one 'key' thing today to protect their money

       Comments

       Cash ISA savers urged to make major change

       3 Comments

       Discover Effortless Glucose Monitoring: Request a Free TrialDexcom | Sponsored Sponsored

       Try Now

       Undo

       Worrying new figures show how many UK pensioners 'don't have the money to last retirement'

       4 Comments

       Martin Lewis Premium Bonds advice on ￡1,000 savings tax risk cash ISA change

       2 Comments

       Why Patriots Love This Door Sign Patriotic Eagle Sign | Sponsored Sponsored

       Learn More

       Undo

       Personal tax allowance increase to ￡20,000 update 'in days' in Commons showdown

       301 Comments

       Rachel Reeves takes huge ￡50bn gamble on growth - and she's doing it with YOUR pension

       54 Comments

       9 out of 10 Windows Owners Didn't Know Thislifestyletechtips.com | Sponsored Sponsored

       Read More

       Undo

       Triple lock experts share their predictions for next year's state pension increase

       2 Comments

       Rachel Reeves slammed as world's super rich flee over tax crackdown

       4 Comments

       Rachel Reeves's Cash ISA raid shot down as banks say - ‘Hands off pensioners' money!'

       312 Comments

       Top six Cash ISAs with interest rates of up to 5.71%

       1 Comments

       Nationwide Building Society offers competitive 6.5% interest savings account

       2 Comments

       ￡20,000 income tax ruling as Parliament debates call for allowance hike

       43 Comments

       HMRC urges Brits to ‘cash in' on forgotten ￡2,200 savings

       Comments

       Rachel Reeves told do these 3 things as UK economy in chaos after tax hikes

       30 Comments

       HMRC alerts parents who had children between 1978 and 2010 about potential ￡5,000 back pay

       Comments

       Lloyds Bank offers competitive 6.25% interest savings account

       4 Comments

       'I'm a personal finance expert and here's my 4-point plan to save cash ISAs'

       Comments

       Savers have just two days to open savings account paying 5.37% - but there's a catch

       6 Comments

       NatWest blow for customers as it announces major change to accounts 'within weeks'

       12 Comments

       State pension age rise update as UK savers facing ￡10bn blow

       6 Comments

       Martin Lewis urges people with savings to do one 'key' thing today to protect their money

       Comments

       Don't miss... Keir Starmer unlikely to reshuffle top team before summer despite election de... [LATEST]

       The Chancellor has been told that the plans could lead to higher bills (Image: Getty)

       Emma Reynolds, the economic secretary to the Treasury met with leaders of the UK’s largest banks this week, including HSCBC, Natwest and Lloyds.

       It is understood that Ms Reynolds was warned firmly that the proposed changes would lead to higher bills for people, including pensioners and do little to boost national growth.

       Powered By

       00:00/01:02

       10 Sec

       68.6K

       2

       Rachel Reeves speaks after shock GDP jump

       Next

       Stay

       Mr Haire added: “We agree with the Government that people in the UK should increase, if they have the wherewithal and the risk appetite, the amount of money they have got in equities.

       Sponsored

       The Quote General | Sponsored Sponsored

       Learn More

       Nevada New Policy for Senior Drivers

       Undo

       “However, changing the cash Isa limit will not do that, so therefore it’s the wrong tool to achieve the policy outcome.”

       Andrew Griffith, the shadow business secretary, has blasted the plans as a means of boosting treasury income as expenditure becomes tight.

       He said: Rachel Reeves must have caught some early sunstroke if she believes those who work hard and save should be paying even more tax.

       “Cutting the long standing, tax free cash ISA is a mad, penny-pinching grab by the Treasury.

       Don't miss...

       Express readers debate whether Labour's farming tax raid should be delayed [LATEST]

       Rachel Reeves slammed as world's super rich flee over tax crackdown [LATEST]

       Calls to 'remedy ' Winter Fuel Payment changes for millions [LATEST]

       Andrew Griffith accused the Chancellor of a "penny-pinching grab". (Image: Getty)

       SUBSCRIBE Invalid email

       We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy

       Trending

       Ms Reynolds has further been warned that the changes would damage building societies, due to rules which require them to fund mortgage lending through customer deposits, 40% of which come from Isas.

       The economic secretary addressed concerns at the Building Society Association’s annual conference in Birmingham last week, where she recognised there had been “a tremendous amount of speculation about” Isa changes.

       She said “I absolutely appreciate that people need a financial buffer for a rainy day, and we all do. Many of us have cash Isas and cash savings.

       DON'T MISS

       Powered by

       HMRC alerts parents who had children between 1978 and 2010 about potential ￡5,000 back pay

       Comments

       Lloyds Bank offers competitive 6.25% interest savings account

       4 Comments

       'I'm a personal finance expert and here's my 4-point plan to save cash ISAs'

       Comments

       Savers have just two days to open savings account paying 5.37% - but there's a catch

       6 Comments

       NatWest blow for customers as it announces major change to accounts 'within weeks'

       12 Comments

       State pension age rise update as UK savers facing ￡10bn blow

       6 Comments

       Martin Lewis urges people with savings to do one 'key' thing today to protect their money

       Comments

       Cash ISA savers urged to make major change

       3 Comments

       Worrying new figures show how many UK pensioners 'don't have the money to last retirement'

       4 Comments

       Martin Lewis Premium Bonds advice on ￡1,000 savings tax risk cash ISA change

       2 Comments

       Personal tax allowance increase to ￡20,000 update 'in days' in Commons showdown

       301 Comments

       Rachel Reeves takes huge ￡50bn gamble on growth - and she's doing it with YOUR pension

       54 Comments

       Triple lock experts share their predictions for next year's state pension increase

       2 Comments

       Rachel Reeves slammed as world's super rich flee over tax crackdown

       4 Comments

       Surgeons Warn: Side Sleepers Should Stop Sleeping on These Pillows ImmediatelySleep Digest Publication | Sponsored Sponsored

       Undo

       Rachel Reeves's Cash ISA raid shot down as banks say - ‘Hands off pensioners' money!'

       312 Comments

       Top six Cash ISAs with interest rates of up to 5.71%

       1 Comments

       Sarah Palin, 61,Shows Her Huge Size In New PhotosGolfhooked | Sponsored Sponsored

       Undo

       Nationwide Building Society offers competitive 6.5% interest savings account

       2 Comments

       ￡20,000 income tax ruling as Parliament debates call for allowance hike

       43 Comments

       This Dad Decimated 10,000 Bed Bugs From His Kid's Bed After Pushing 1 Buttonswissklip | Sponsored Sponsored

       Undo

       HMRC urges Brits to ‘cash in' on forgotten ￡2,200 savings

       Comments

       Rachel Reeves told do these 3 things as UK economy in chaos after tax hikes

       30 Comments

       Salma Hayek, 58,Shows Her Huge Size In New PhotosApp Cute | Sponsored Sponsored

       Undo

       HMRC alerts parents who had children between 1978 and 2010 about potential ￡5,000 back pay

       Comments

       Lloyds Bank offers competitive 6.25% interest savings account

       4 Comments

       Michelle, 61, Shows Her Huge Size In New PhotosApp Cute | Sponsored Sponsored

       Undo

       'I'm a personal finance expert and here's my 4-point plan to save cash ISAs'

       Comments

       Savers have just two days to open savings account paying 5.37% - but there's a catch

       6 Comments

       Malia Reveals Her Boyfriend & You Will Easily Recognize HimThe Latest Article | Sponsored Sponsored

       Undo

       NatWest blow for customers as it announces major change to accounts 'within weeks'

       12 Comments

       State pension age rise update as UK savers facing ￡10bn blow

       6 Comments

       SS Recipients Under $2,329/mo Now Entitled To 11+ Benefits in NevadaSmart Lifestyle Trends | Sponsored Sponsored

       Undo

       Martin Lewis urges people with savings to do one 'key' thing today to protect their money

       Comments

       Cash ISA savers urged to make major change

       3 Comments

       Look For Any High School Yearbook, It's FreeClassmates | Sponsored Sponsored

       Undo

       Worrying new figures show how many UK pensioners 'don't have the money to last retirement'

       4 Comments

       Martin Lewis Premium Bonds advice on ￡1,000 savings tax risk cash ISA change

       2 Comments

       How to: Get 30% off Zepbound and Semaglutides!G Plans | Sponsored Sponsored

       Get Offer

       Undo

       Personal tax allowance increase to ￡20,000 update 'in days' in Commons showdown

       301 Comments

       Rachel Reeves takes huge ￡50bn gamble on growth - and she's doing it with YOUR pension

       54 Comments

       eToro Stock Goes Public – Discover the IPO Buzz TodayeToro | Sponsored Sponsored

       Click Here

       Undo

       Triple lock experts share their predictions for next year's state pension increase

       2 Comments

       Rachel Reeves slammed as world's super rich flee over tax crackdown

       4 Comments

       Rachel Reeves's Cash ISA raid shot down as banks say - ‘Hands off pensioners' money!'

       312 Comments

       Top six Cash ISAs with interest rates of up to 5.71%

       1 Comments

       Nationwide Building Society offers competitive 6.5% interest savings account

       2 Comments

       ￡20,000 income tax ruling as Parliament debates call for allowance hike

       43 Comments

       HMRC urges Brits to ‘cash in' on forgotten ￡2,200 savings

       Comments

       Rachel Reeves told do these 3 things as UK economy in chaos after tax hikes

       30 Comments

       HMRC alerts parents who had children between 1978 and 2010 about potential ￡5,000 back pay

       Comments

       Lloyds Bank offers competitive 6.25% interest savings account

       4 Comments

       'I'm a personal finance expert and here's my 4-point plan to save cash ISAs'

       Comments

       Savers have just two days to open savings account paying 5.37% - but there's a catch

       6 Comments

       NatWest blow for customers as it announces major change to accounts 'within weeks'

       12 Comments

       State pension age rise update as UK savers facing ￡10bn blow

       6 Comments

       Martin Lewis urges people with savings to do one 'key' thing today to protect their money

       Comments

       Why One Dog Suffers From Heat While the Other Sleeps Calmly?Pelsbarn

       Undo

       by Taboola by Taboola

       Sponsored Links Sponsored Links

       Promoted Links Promoted Links

       Here's The Average Price Of Gutter Protection For Houses In Las Vegas HomeBuddy

       Undo

       by Taboola by Taboola

       Sponsored Links Sponsored Links

       Promoted Links Promoted Links

       Three Major Banks Are Paying Record High Interest Rates - See the ListCD Rates | Search Ads

       Undo

       by Taboola by Taboola

       Sponsored Links Sponsored Links

       Promoted Links Promoted Links

       We Found the Best Spring Dresses on Sale at AmazonCountry Living

       Undo

       by Taboola by Taboola

       Sponsored Links Sponsored Links

       Promoted Links Promoted Links

       “And there’s a reason for that. You could lose your job – I lost my job in 2019. We understand that cash savings play a very important role.”

       A Treasury spokesman said: “We want to support people to save and absolutely recognise the important role that cash savings play in building a buffer for a rainy day.

       “We also want to ensure that savers are getting the best returns possible, while boosting the economy to create jobs right across the UK. No decisions have been made.”