Banks and building societies are likely to start a “mini rate war” as they compete to attract customers ahead of an expected cut to the cash ISA allowance, savings experts have predicted.

Savers can currently put up to £20,000 per year in ISAs – cash or stocks and shares – to protect the returns and interest from being taxed , but Chancellor Rachel Reeves is expected to announce a cut to the allowance on the cash version in Wednesday’s Budget.

Personal finance experts expect any cut to begin from April – when the new tax year starts – and that savers could rush to load their cash ISAs ahead of that date.

Savings market experts predict that banks and building societies may move to offer customers higher rates in order to attract the extra business.

This means that savers may well have

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