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The Chancellor has announced a major change to cash ISAs in her Autumn Budget , cutting the limit from £20,000 to £12,000 a year.

Speaking in the House of Commons on Wednesday afternoon, Rachel Reeves said: "The UK has some of the lowest levels of retail investment in the G7. That is not only bad for businesses who need that investment to grow, it's bad for savers too."

She continued: "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 a cash ISA.

"So, from April 2027, I will reform our ISA system, keeping the full £20,000 pound allowance while designating £8000 of it exclusively for investment.

"Over 65s will retain the full cash allowance."

Ms Reeves ad

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