This follows a recent debate regarding the balance between cash savings and stock market investments.

Chancellor Rachel Reeves aims to encourage greater investment in equities, leading to speculation of potential ISA reforms. While changes will not be implemented this month, officials indicate they remain a long-term objective, possibly to be addressed in the Autumn Budget.   

The government faces lobbying from fund managers advocating for increased stock market investment to stimulate economic growth. Proposals include lowering the cash ISA allowance from £20,000 to £4,000, or merging cash and stocks and shares ISAs into a single account.

Cash ISAs, holding nearly £300 billion, are favoured by over 18 million people. Investment firms argue that prioritising stock market investments yields higher returns. However, building societies and savings institutions, including Nationwide and the Building Societies Association, are actively opposing any reduction in cash ISA allowances, emphasising the crucial role these accounts play in facilitating savings and funding first-time buyer mortgages.