Rachel Reeves has already frozen the ISA allowance, more attacks could follow (Image: Getty)
As I reported on Wednesday, City fund managers .
In a meeting with Reeves, they argued that if some of the £300billion sitting in Cash ISAs was diverted into the stock market, it would give UK PLC a real boost.
The appeal for City investment managers is obvious. It would trigger an avalanche of cash into their Stocks and Shares ISA funds. Just think of the fees they’ll earn!
Alarmingly, Reeves seems receptive. She’s desperate to revive the economy after giving it the kiss of death. Pushing savers to invest their hard-earned money in UK businesses might help.
She’s not the only Labour Minister who’s keen. City Minister Emma Reynolds has complained that “hundreds of billions of pounds are sitting in Cash ISAs rather than being funnelled into the stock market”.
It feels like a concerted attack. Especially with Reeves .
Don’t miss…
Our ISAs are under assault. Reeves has already frozen the annual allowance until 2030. Labour’s new Pensions Minister Torsten Bell has called for .
More attacks seem inevitable as Reeves scrambles to balance the books.
Ironically, ISAs were originally a Labour idea. Former Chancellor Gordon Brown launched them in 1999. Unlike most of his policies, this one remains popular. More than 12 million take out ISAs yearly. Roughly half of pensioners have one.
ISA savings are tax-free for life. This costs the Treasury billions in lost tax revenues.
With the nation’s finances in dire straits, they want their hands on it. To the fury of Express.co.uk readers who commented on my last piece.
Reader AT61 summed up the mood: “This government cannot get money out of the public quick enough. If they can tax it, they will.”
Amosstone said Brits are being “fleeced” by Labour at every turn, especially “if you own your home, save, have a job, have a private pension, own a business or want to pass your wealth to your children”.
Don’t miss… [REVEAL]
Reader Peter Keen said the fund managers’ plot won’t work anyway. “People with modest savings won’t take the risk of investing in the UK “as the British economy is gurgling down the plug hole under the stupid financial decisions of the Chancellor.”
Don’t get me wrong, I’m a fan of Stocks and Shares ISAs. Over time, returns should beat cash. But they’re not for everyone. Some people can’t face stock market volatility.
Pensioners need a reliable income from their savings. Many can’t afford to gamble on shares.
Scrapping Cash ISAs would be an outrageous attack on the prudent and responsible. Reeves must rethink.
Instead, the sniping goes on. A Treasury committee is now questioning the future of the Lifetime ISA – a product that helps young people save for their first home.
Labour attacks clearly aren’t going to stop. ISAs will be whittled away, little by little.