Chancellor Rachel Reeves is set to cut the cash ISA limit

Savers are facing a major policy shake-up at the forthcoming Budget as Chancellor Rachel Reeves is reportedly planning to slash the annual cash ISA ceiling to £12,00 in a bid to encourage increased investment in stocks instead of hoarding cash.

People close to preparations for Wednesday’s Budget said Reeves had decided to reduce the limit from £20,000, but slightly higher than the £10,000 cap that had initially been floated, according to reports from the Financial Times.

The decision will likely appease bodies who are in support of the cash ISA, including building societies who initially opposed the slash in the summer when it was first brought into consideration.

The lenders argued they use cash ISAs to fund mortgages, and re

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