City largely welcomes reports Healey will reverse cuts to cash Isa allowance in the budget – business live

City experts are welcoming reports that chancellor John Healey will scrap plans to slash the annual cash Isa allowance from £20,000 to £12,000 a year.

According to the Financial Times, Healey had concluded that this is the wrong way to persuade people to invest more in stocks and shares.

The move had been announced by Healey’s predecessor, Rachel Reeves, in an attempt to encourage people to invest in UK companies.

It would have meant that from 6 April 2027, anyone under 65 would only have been allowed to save up to £12,000 in a cash ISA. Anything above that will have to move into a stocks and shares Isa.