A potential cut in the cash Isa limit in Wednesday’s Budget would not necessarily persuade people to move their money into investments, a finance expert has said.

The Financial Times has reported that the annual cash Isa limit could be reduced to £12,000.

Sarah Coles, head of personal finance at Hargreaves Lansdown , said: “We need an investment culture in the UK, and some of the money that has been saved in cash Isas would work harder for people if it was invested instead, but there’s no evidence that cutting the cash Isa allowance would encourage them to make the change.

“There will be people for whom cash Isas are the most sensible home for their money, especially if they’re saving for the short-term, have significant sums of cash and are a higher earner.

“When (Hargreaves Lansd

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