Cash ISA reform ‘back on table’ for Budget – here’s what Rachel Reeves could change
Chancellor Rachel Reeves is reportedly eyeing a bold overhaul of the UK's savings system, sparking debate over potential changes to the beloved Cash ISA.
Chancellor Rachel Reeves is reportedly eyeing a bold overhaul of the UK's savings system, sparking debate over potential changes to the beloved Cash ISA.
Reports suggest Ms Reeves is considering a range of measures to raise revenue without breaking Labour's pledge not to increase income tax, VAT or National Insurance.
Critics argue hikes to capital gains tax risk punishing long-term savers and destabilising the housing market rather than raising sustainable revenue.
Analysts have noted that bankruptcy rates have dipped only because many struggling households cannot even afford the court fees associated with going bust.
The latest data will be come as a bitter disappointment compared with the first quarter, which saw growth of 0.7%. Posting on X, Rachel Reeves said: "I know there is more to do to deliver an economy that works for working people."
The data weighed heavily on the pound, which dropped against the dollar, euro, and yen as investors digested signs of a sluggish recovery in household spending.