The Cash ISA is one of the most trusted and widely used savings tools in the country. Around two thirds prefer it to the Stocks and Shares ISA.
But Reeves isn’t interested in what’s popular or practical. She’s decided too many people are sitting on cash, and wants to nudge them into the stock market instead. So she’s going to blow the whole thing up.
She thinks ISAs will do more good by channelling money into business and boosting long-term growth. And yes, shares often do deliver better returns over time.
But not always. And not for everyone.
It makes no sense to invest in the stock market if you’re saving for a house deposit, a big purchase, or just need the money to be there when you need it. Especially not if you’re a pensioner trying to protect what little you’ve got.
Reeves may hope older savers will roll the dice on equities, but most won’t. Instead, they’ll leave their money in ordinary accounts, and see more of it taxed.
Which means they’ll end up poorer, not better off.
The Cash ISA isn’t being replaced with something better. This is a tax raid, plain and simple. And once again, struggling pensioners will take the biggest hit.
The Cash ISA is in demand because it works. It’s simple, safe and easy to understand. You put your money in, earn tax-free interest, and the government doesn’t take a slice.
It doesn’t chase mad ideas. It won’t flip-flop under pressure. And it doesn’t punish those who do the right thing.
It’s stable, secure, honest, doesn’t make false claims and is built on common sense. If Cash ISAs came with a CV, you could rely on it.
In short, the Cash ISA is everything Rachel Reeves isn’t. Popular, sensible and admired by millions.
We need the Cash ISA. We don’t need this Chancellor.
