Reeves should not cut cash ISA allowance, MPs say

MPs advise Chancellor not to cut cash ISA allowance in upcoming Budget, as reducing tax-free allowance may not promote investment culture as intended, states the Treasury Select Committee. Chancellor Rachel Reeves is considering changes to cash ISAs amidst a Budget shortfall, with plans earlier to reduce the tax-free amount now on hold due to opposition. Reeves aims to strike a balance in tax changes to ensure good savings returns for the future, with the Committee stating that cutting the cash ISA limit may not encourage investing in stocks and shares.