Latest news with #NottinghamBuildingSociety
Yahoo
10 hours ago
- Business
- Yahoo
Brits 'slam hated ISA plan' in new setback for Rachel Reeves
Chancellor Rachel Reeves was believed to be originally set to announce ISA reforms at her Mansion House speech last week, but following significant pushback, the Labour Party government U-turned on the decision. Now the focus has shifted to the autumn budget, with finance experts still suggesting the Chancellor is plotting to slash the tax-free limit of a cash ISA from £20,000 to £10,000. However, new research from the specialists at Nottingham Building Society has suggested that UK savers are against Rachel Reeves' reported plan to change ISAs. Read more: Families hit by two-child benefit cap can claim extra cash in new update The current ISA rules allow for savers to deposit £20,000 tax-free, split between cash, stocks and shares, lifetime, and innovative finance accounts. Of the 2,003 UK respondents to the building society study (who have or have previously had Cash ISAs), 55% of all savers oppose the move. This rose to 76% of over-55s, while 78% of the respondents believe the government should be encouraging tax-free saving through tools like Cash ISAs, not discouraging it. One of the reasons behind the potential cash ISA cuts is to push savers into using Stocks and Shares. However, only 38% of Cash ISA holders would consider switching to a Stocks and Shares ISA if the allowance is cut. One in three said they'd simply save less, while a fifth (20%) of cash ISA savers said a cut to the allowance would affect their ability to put down a deposit on a home. This rose to 41% among 25–34-year-olds. Additionally, 34% fear it would hit their retirement saving and 36% say it would harm their ability to build an emergency fund. Harriet Guevara, Chief Savings Officer at Nottingham Building Society: 'We're pleased the Chancellor has opened the door to proper consultation on ISA reform. Any changes to a system that millions rely on to build financial security must be based on evidence and real-life saver behaviour. 'The Cash ISA allowance is a mainstream tool used by everyday people to manage their money sensibly. "More than half of our fixed-rate ISA customers used the full £20,000 allowance last year, and among those saving in-branch, that figure rises to 65 per cent. This shows that for many, the Cash ISA is a lifeline. 'We support the government's aim to boost investing and grow the economy, but limiting savers' choices by cutting the Cash ISA allowance is not the right way to do it." She added: 'It also has direct consequences for mortgage lending. ISAs held with mutuals like Nottingham Building Society support lending to aspiring homeowners. "Capping what people can save risks capping what we can lend, and that's directly at odds with the government's goal of doubling the size of the mutual sector. 'This consultation must put the saver at the centre. That means retaining choice, rewarding good savings behaviour and supporting financial resilience for the long-term.'
The Sun
11-07-2025
- Business
- The Sun
Plans to cut £20k tax-free allowance for cash ISAs shelved by Rachel Reeves amid backlash
PLANS to cut the tax-free allowance for cash ISAs have been put on hold by the Chancellor in a move that has been welcomed by savings experts. It had been speculated that Rachel Reeves would announce the major change to the savings accounts, which currently offer tax-free interest on up to £20,000, in her Mansion House speech on July 15. 2 However, it's understood that the Chancellor has now scrapped the plans following backlash from banks, building societies and campaigners, and will instead focus on encouraging more people to invest in stocks and shares. Welcoming the move, Nottingham Building Society chief savings officer Harriet Guevara, said: 'This is positive news for savers and for lenders. 'We've consistently made the case, alongside others across the mutual and building society sector, for maintaining the full allowance, and welcome any decision to consult further with industry rather than rush through damaging reform that would disincentivise saving. 'Cash ISAs remain a vital tool for millions to build financial resilience over time, particularly in the current economic climate. 'Our data shows more than half of our fixed ISA customers used the full £20,000 allowance last year, rising to 65% among those who save in-branch, underlining just how important this option is to those trying to get ahead financially.' Some building societies reported seeing a jump in cash ISA applications last week, as speculation intensified over the future of the allowance. They also warned that mortgages could become more costly and harder to access if the cash ISA limit was cut, with retail deposits being needed to fund mortgage lending. A Treasury spokesperson said: 'Our ambition is to ensure people's hard-earned savings are delivering the best returns and driving more investment into the UK economy.' Martin Lewis issues reminder to anyone born between 1984 and 2006 as they can get £1,000 free 2
Powys County Times
11-07-2025
- Business
- Powys County Times
Cash Isa limits set to be left untouched at next week's Mansion House speech
Cash Isas will be left untouched at next week's Mansion House speech, in a move that has been welcomed by savings experts. Speculation had been mounting that plans to cut the annual tax-free cash Isa allowance could be announced in Chancellor Rachel Reeves's Mansion House speech on July 15. But the PA news agency understands that Ms Reeves will instead focus on new plans to provide consumers with the information and support they need to invest. The Government is expected to continue talking to industry members and others about the options for reform, with a broad consensus that the UK's savings and investment culture needs to be encouraged. Harriet Guevara, chief savings officer at Nottingham Building Society, said: 'This is positive news for savers and for lenders. 'We've consistently made the case, alongside others across the mutual and building society sector, for maintaining the full allowance, and welcome any decision to consult further with industry rather than rush through damaging reform that would disincentivise saving. 'Cash Isas remain a vital tool for millions to build financial resilience over time, particularly in the current economic climate. 'Our data shows more than half of our fixed Isa customers used the full £20,000 allowance last year, rising to 65% among those who save in-branch, underlining just how important this option is to those trying to get ahead financially.' Some building societies reported seeing a jump in cash Isa applications last week, as speculation intensified over the future of the allowance. Mutuals also warned that mortgages could become more costly and harder to access if the cash Isa limit was cut, with retail deposits being needed to fund mortgage lending. The Government has been looking at how to help put more money in people's pockets. Earning stronger returns on savings by encouraging investing could be one way to do this, although the value of investments can go down as well as up. The aim of a potential cut in the cash Isa allowance could have encouraged more investment in stocks and shares, some parts of the industry argued. But some savings providers also argued that any cut to the cash Isa may simply encourage savers to park their money in taxable savings accounts, rather than the stock market. The Financial Conduct Authority (FCA) has recently outlined plans to reduce the 'advice gap' with proposals to enable firms to offer a new type of help called 'targeted support' and make suggestions to groups of consumers with common characteristics. Sarah Coles, head of personal finance, Hargreaves Lansdown, said that 'rushing into a change' would have been 'a real blow for savers and may not get more people to invest anyway'. She said: 'Changing the boundary on advice and guidance will be truly transformational. Once companies can offer targeted support to their clients, it will help more people build their understanding and confidence, so they choose to branch out into investment because they know it's right for them – rather than feeling pushed into it to retain their Isa allowance.' Ms Coles added: 'There is a real opportunity to simplify choice and open up investment opportunities. Dropping the 'stocks and shares' language and updating the Isa to call it an investment Isa would help overcome needless confusion.' A Treasury spokesperson said: 'Our ambition is to ensure people's hard-earned savings are delivering the best returns and driving more investment into the UK economy.' Matthew Carter, head of savings and mortgages at Coventry Building Society, said: 'Slashing the cash Isa allowance would be all stick and no carrot. 'It would raise the tax bill for savers, penalising them for doing the responsible thing, and nudge them toward taking greater risk with their money in stocks and shares. 'The ambition to encourage more investment in UK equities is a good one. 'But taking extra risk with the hope of greater longer-term reward isn't always the appropriate choice. 'Many people, especially those already in retirement or saving for a house deposit, don't need or want the uncertainty of the stock market.' Jason Hollands, managing director of Bestinvest by Evelyn Partners, the online investment platform, said: 'Cutting the cash Isa allowance now when saving rates remain relatively high and the meagre annual personal savings allowance has remained frozen since inception, would have amounted to little more than a tax grab.' Victor Trokoudes, chief executive and founder of Isa provider Plum, said: 'The FCA's recent announcement about 'targeted support' has massive potential to give people the guidance and information they need to make more informed financial decisions that are best for their circumstances.' Cecilia Mourain, chief homebuying and savings officer at Moneybox, said: 'Cash Isas aren't a blocker to investing – they're a gateway. 'Saving and investing go hand in hand, and both are crucial to achieving financial goals at every stage of life.' Alex Sitaras, head of savings at Skipton Building Society, said: 'We back the goal of getting more people to invest, absolutely. But not at the expense of those who rely on low-risk, flexible savings. Cash Isas work. Undermining them doesn't. 'What we'd like to see now is a Government-backed, industry-led campaign focused on education, awareness, and better financial decision-making.' Tom Selby, director of public policy at AJ Bell, said: 'Allowing more time for consulting industry is a sensible move, as is the focus on encouraging savers to invest using improved financial guidance through 'targeted support'.'
North Wales Chronicle
11-07-2025
- Business
- North Wales Chronicle
Cash Isa limits set to be left untouched at next week's Mansion House speech
Speculation had been mounting that plans to cut the annual tax-free cash Isa allowance could be announced in Chancellor Rachel Reeves's Mansion House speech on July 15. But the PA news agency understands that Ms Reeves will instead focus on new plans to provide consumers with the information and support they need to invest. The Government is expected to continue talking to industry members and others about the options for reform, with a broad consensus that the UK's savings and investment culture needs to be encouraged. Harriet Guevara, chief savings officer at Nottingham Building Society, said: 'This is positive news for savers and for lenders. 'We've consistently made the case, alongside others across the mutual and building society sector, for maintaining the full allowance, and welcome any decision to consult further with industry rather than rush through damaging reform that would disincentivise saving. 'Cash Isas remain a vital tool for millions to build financial resilience over time, particularly in the current economic climate. 'Our data shows more than half of our fixed Isa customers used the full £20,000 allowance last year, rising to 65% among those who save in-branch, underlining just how important this option is to those trying to get ahead financially.' Some building societies reported seeing a jump in cash Isa applications last week, as speculation intensified over the future of the allowance. Mutuals also warned that mortgages could become more costly and harder to access if the cash Isa limit was cut, with retail deposits being needed to fund mortgage lending. The Government has been looking at how to help put more money in people's pockets. Earning stronger returns on savings by encouraging investing could be one way to do this, although the value of investments can go down as well as up. The aim of a potential cut in the cash Isa allowance could have encouraged more investment in stocks and shares, some parts of the industry argued. But some savings providers also argued that any cut to the cash Isa may simply encourage savers to park their money in taxable savings accounts, rather than the stock market. The Financial Conduct Authority (FCA) has recently outlined plans to reduce the 'advice gap' with proposals to enable firms to offer a new type of help called 'targeted support' and make suggestions to groups of consumers with common characteristics. Sarah Coles, head of personal finance, Hargreaves Lansdown, said that 'rushing into a change' would have been 'a real blow for savers and may not get more people to invest anyway'. She said: 'Changing the boundary on advice and guidance will be truly transformational. Once companies can offer targeted support to their clients, it will help more people build their understanding and confidence, so they choose to branch out into investment because they know it's right for them – rather than feeling pushed into it to retain their Isa allowance.' Ms Coles added: 'There is a real opportunity to simplify choice and open up investment opportunities. Dropping the 'stocks and shares' language and updating the Isa to call it an investment Isa would help overcome needless confusion.' A Treasury spokesperson said: 'Our ambition is to ensure people's hard-earned savings are delivering the best returns and driving more investment into the UK economy.'
Rhyl Journal
11-07-2025
- Business
- Rhyl Journal
Cash Isa limits set to be left untouched at next week's Mansion House speech
Speculation had been mounting that plans to cut the annual tax-free cash Isa allowance could be announced in Chancellor Rachel Reeves's Mansion House speech on July 15. But the PA news agency understands that Ms Reeves will instead focus on new plans to provide consumers with the information and support they need to invest. The Government is expected to continue talking to industry members and others about the options for reform, with a broad consensus that the UK's savings and investment culture needs to be encouraged. Harriet Guevara, chief savings officer at Nottingham Building Society, said: 'This is positive news for savers and for lenders. 'We've consistently made the case, alongside others across the mutual and building society sector, for maintaining the full allowance, and welcome any decision to consult further with industry rather than rush through damaging reform that would disincentivise saving. 'Cash Isas remain a vital tool for millions to build financial resilience over time, particularly in the current economic climate. 'Our data shows more than half of our fixed Isa customers used the full £20,000 allowance last year, rising to 65% among those who save in-branch, underlining just how important this option is to those trying to get ahead financially.' Some building societies reported seeing a jump in cash Isa applications last week, as speculation intensified over the future of the allowance. Mutuals also warned that mortgages could become more costly and harder to access if the cash Isa limit was cut, with retail deposits being needed to fund mortgage lending. The Government has been looking at how to help put more money in people's pockets. Earning stronger returns on savings by encouraging investing could be one way to do this, although the value of investments can go down as well as up. The aim of a potential cut in the cash Isa allowance could have encouraged more investment in stocks and shares, some parts of the industry argued. But some savings providers also argued that any cut to the cash Isa may simply encourage savers to park their money in taxable savings accounts, rather than the stock market. The Financial Conduct Authority (FCA) has recently outlined plans to reduce the 'advice gap' with proposals to enable firms to offer a new type of help called 'targeted support' and make suggestions to groups of consumers with common characteristics. Sarah Coles, head of personal finance, Hargreaves Lansdown, said that 'rushing into a change' would have been 'a real blow for savers and may not get more people to invest anyway'. She said: 'Changing the boundary on advice and guidance will be truly transformational. Once companies can offer targeted support to their clients, it will help more people build their understanding and confidence, so they choose to branch out into investment because they know it's right for them – rather than feeling pushed into it to retain their Isa allowance.' Ms Coles added: 'There is a real opportunity to simplify choice and open up investment opportunities. Dropping the 'stocks and shares' language and updating the Isa to call it an investment Isa would help overcome needless confusion.' A Treasury spokesperson said: 'Our ambition is to ensure people's hard-earned savings are delivering the best returns and driving more investment into the UK economy.'
