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Rachel Reeves has been urged to "stick to her guns" and halve the tax-free cash ISA allowance to £10,000 . Savers could be thousands of pounds better off if the cash ISA limit is cut, it has been claimed.

Around 2.8 million people currently save more than £10,000 a year into cash ISAs, roughly a third of all ISA holders, according to new research from investment platform IG.

Michael Healy, UK Managing Director at IG, said: "The Chancellor is absolutely right to tackle the UK’s overreliance on savings, starting with a product that does nothing for long-term wealth creation - the cash ISA.

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"Reducing the annual allowance to £10,000 sends the right message that the government is serious abou

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