Rachel Reeves has announced a cut in the cash ISA limit in her autumn budget, cutting cash ISAs from £20,000 to £12,000 a year.

In the budget, she said: "The UK has some of the lowest levels of retail investment in the G7 and that is not only bad for business who needs that investment to grow. It's bad for savers, too. Someone who has invested £1000 a year in an average stocks and shares ISA every year since 1999 would be £50,000 better off today if they'd put that same money into than if they put them same money into a cash ISA.

"And so from April 2027 I will reform our ISA system, keeping the full £20,000 pound allowance while designating £8,000 of it exclusively for investment, with over 65s, retaining the full cash allowance, and thanks to our changes to financial advice and guidance

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