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Original poster

To think Rachel Reeves patronised the public with her rhetoric on cash ISAs?!

215 replies

Hulabalu · 13/07/2025 19:09

I paraphrase but she said she wanted to cut the ‘cash’ ISA allowance from 20k to a fraction of that but allow people to still do the 20k stocks & shares ISA. She said something like she wanted “peoples hard earned money put to work in the stock market”.
She gave ZERO thought to people’s attitude to risk, that they might not want to risk their money in stock market.
She just wanted people investing in UK companies to boost economy. Not that people would have necessarily invested in Uk stocks.
Thankfully the banks etc stepped in and stopped her stupid plan
But I now can’t stand the woman! How dare she try to “sell” her plan to us and take us for fools 😡

OP posts:
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5
TheNuthatch · 16/07/2025 09:49

Alexandra2001 · 16/07/2025 08:52

UK has consistently had higher inflation than most in the G7 for several years now.
Even when it was 2.2% last year, it was still one of the highest, same as when it shot up to 11% under the Tories, higher than anyone else.

Instead of gloating, why don't we look at the reasons? though i do believe any bad economic news is gold for a few on here....

Is it Brexit, price fixing? the effects of Truss on gilts? poor economic policies? lack of regulation in the energy market? which Labour are still doing nothing about, despite the GE promises.

Edited
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One of the highest, or higher than most is not the same as the highest though is it?

Nobody is gloating or pleased about extortionate food prices, or fuel. Low income families will be struggling to afford food rn because of labour policies. The employer NI increase is the main factor here.

EasternStandard · 16/07/2025 09:20

I doubt Labour will look at their own policies. For inflation or higher unemployment.

The £25bn rise in national insurance for employers, announced in the autumn budget, will likely add pressure to inflation, according to Huw Pill, chief economist at the Bank of England.

Latest Bank of England News and Updates - Yahoo Finance

Find the latest news and updates on inflation, interest rates and more from Yahoo Finance.

https://uk.finance.yahoo.com/topic/bank-of-england/

Alexandra2001 · 16/07/2025 08:52

TheNuthatch · 16/07/2025 08:19

From base rate at the election, to the highest inflation in the G7 now.

Show quote history

UK has consistently had higher inflation than most in the G7 for several years now.
Even when it was 2.2% last year, it was still one of the highest, same as when it shot up to 11% under the Tories, higher than anyone else.

Instead of gloating, why don't we look at the reasons? though i do believe any bad economic news is gold for a few on here....

Is it Brexit, price fixing? the effects of Truss on gilts? poor economic policies? lack of regulation in the energy market? which Labour are still doing nothing about, despite the GE promises.

EasternStandard · 16/07/2025 08:39

TheNuthatch · 16/07/2025 08:19

From base rate at the election, to the highest inflation in the G7 now.

Show quote history

‘Unexpected’ seems to be domestic policies for negative growth and inflation

TheNuthatch · 16/07/2025 08:19

twistyizzy · 16/07/2025 07:33

Well inflation's up, "unexpectedly" 🙄

From base rate at the election, to the highest inflation in the G7 now.

Alexandra2001 · 16/07/2025 08:07

twistyizzy · 16/07/2025 07:51

At election it was pretty much at bsse rate but has risen continuously since then.

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Terrible numbers, aren't they? 3 years of way above target rate inflation, must have been external pressures... same as there is now.

twistyizzy · 16/07/2025 07:51

Alexandra2001 · 16/07/2025 07:46

3.6% under Labour, 11% under the Tories....

I know what i prefer.

Show quote history

At election it was pretty much at bsse rate but has risen continuously since then.

To think Rachel Reeves patronised the public with her rhetoric on cash ISAs?!
EasternStandard · 16/07/2025 07:49

twistyizzy · 16/07/2025 07:33

Well inflation's up, "unexpectedly" 🙄

It’ll be ‘disappointing’ next.

Makes it harder for BoE to be certain

Alexandra2001 · 16/07/2025 07:46

twistyizzy · 16/07/2025 07:33

Well inflation's up, "unexpectedly" 🙄

3.6% under Labour, 11% under the Tories....

I know what i prefer.

twistyizzy · 16/07/2025 07:33

Well inflation's up, "unexpectedly" 🙄

Original poster
Hulabalu · 15/07/2025 23:07

BeRedRobin · 15/07/2025 20:02

The only way S&S Works if you have time. If I were 60s I don't have time to see the stock price smoothens after short term turbulence to justify me putting my savings into it. Labour does really hate older people IMO. because they usually are Tories voters.

And the same applies if you have a short time horizon because you’re saving hard for something specific ( house deposit) and cannot afford losses.

someone did make good point that if isa rates are low it’s better having high interest cash savings account and paying the tax. Guess it depends what the best deals are out there.

i also take peoples point that the government have to do “something” and don’t have many levers to pull… so, on reflection, I was maybe a bit harsh towards reeves in my OP.

I guess i want to avoid tax hikes and keep the triple lock, so , messing around with cash ISA seems least of all evils after all…

Glad I’m not reeves or starmer or in government!

OP posts:
EasternStandard · 15/07/2025 23:06

pinotnow · 15/07/2025 22:31

You're right of course. Anything the Tories do wrong is forgotten in the blink of an eye, but the every word, step and whisper of a thought that Labour do, or are said to have done even if they haven't actually, are etched in stone and referred to for all eternity.

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Well not quite. You must have missed partygate and the last GE.

They were voted out after all. Labour are in power even if some on mn prefer to look back. That’s what happens when in power. Your policies are up for scrutiny - bar a few on mn.

pinotnow · 15/07/2025 22:31

EasternStandard · 15/07/2025 16:51

People won’t remember by autumn, or by next week even, the media will bring up Reeves promising not to raise taxes again after last budget.

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You're right of course. Anything the Tories do wrong is forgotten in the blink of an eye, but the every word, step and whisper of a thought that Labour do, or are said to have done even if they haven't actually, are etched in stone and referred to for all eternity.

BeRedRobin · 15/07/2025 20:02

The only way S&S Works if you have time. If I were 60s I don't have time to see the stock price smoothens after short term turbulence to justify me putting my savings into it. Labour does really hate older people IMO. because they usually are Tories voters.

InveterateWineDrinker · 15/07/2025 20:01

EasternStandard · 15/07/2025 19:32

It’ll be tough to sell in any tax rises. A few on here will be ok with anything as per.

But I don’t think the general public will be.

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The problem is that many who find the idea of limiting the tax relief on people with £20k a year spare who want to keep it in cash are the same ones who think 'the rich' should be taxed more.

Alexandra2001 · 15/07/2025 19:58

ThoraHeard · 15/07/2025 19:26

The problem is that you can’t increase people’s risk tolerance just by changing incentives. You have to educate them about investing.

People pushing a cut to the cash isa as benefiting ordinary savers should spend 10 mins on the MN money boards. The number of times I’ve seen people say something like “I tried investing and bought a tracker like people said, but next time I checked it it had gone down £200 so I sold it”- yes, investing is likely to make you richer in the long run but only if you stay in. If someone won’t stay in (because of temperament or lack of understanding or life stage) then it may well make them considerably poorer.

Agree, time in the market, beats timing the market!

Any changes in Cash ISA should be on total holdings, leave the 20k alone.

EasternStandard · 15/07/2025 19:32

MyNameIsX · 15/07/2025 18:38

You are probably right.

’Working people’, oh we meant ‘working people who would ordinarily vote Labour’….

Show quote history

It’ll be tough to sell in any tax rises. A few on here will be ok with anything as per.

But I don’t think the general public will be.

ThoraHeard · 15/07/2025 19:26

The problem is that you can’t increase people’s risk tolerance just by changing incentives. You have to educate them about investing.

People pushing a cut to the cash isa as benefiting ordinary savers should spend 10 mins on the MN money boards. The number of times I’ve seen people say something like “I tried investing and bought a tracker like people said, but next time I checked it it had gone down £200 so I sold it”- yes, investing is likely to make you richer in the long run but only if you stay in. If someone won’t stay in (because of temperament or lack of understanding or life stage) then it may well make them considerably poorer.

Alexandra2001 · 15/07/2025 19:18

MyNameIsX · 15/07/2025 16:42

What utter naivety.

You do post some nonsense.

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What part isn't true?

You re just miffed things aren't worse... but given how the Tories screwed up Afghanistan, thank god they aren't in power anymore.

btw when someone is as rude as you, it means they've lost the ability, if they ever had it, to argue sensibly.

MyNameIsX · 15/07/2025 18:55

twistyizzy · 15/07/2025 18:42

Precisely. Union members.
They don't mean professionals and middle classes who all work. We aren't the right sort of "working people" even though we shoulder majority of the tax burden to pay for the stuff the right sort of "working people" use.

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You know, every day when you wake up to this kind of living nightmare, and it is getting progressively worse.

The UK is unrecognisable to many of us. I genuinely do not see things getting any better.

Didshejustsaythatoutloud · 15/07/2025 18:46

Erlingen99 · 15/07/2025 08:51

The country needs to make a choice. Do we want to maintain/inprove existing levels of government spending? If so, we need to increase the tax take - penny on income tax, increase VAT, get rid of triple lock on pensions etc.

Or do we want to cut services - in which case we carry on as we are.

Labour boxed themselves into a corner by promising no increases in the big tax raising levers at the election. By tinkering around the edges they have left businesses and individuals treading water to see what will happen in October.

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This is all true but anything she tries is going to be vetoed. She still has my sympathies though 😀

twistyizzy · 15/07/2025 18:42

MyNameIsX · 15/07/2025 18:38

You are probably right.

’Working people’, oh we meant ‘working people who would ordinarily vote Labour’….

Show quote history

Precisely. Union members.
They don't mean professionals and middle classes who all work. We aren't the right sort of "working people" even though we shoulder majority of the tax burden to pay for the stuff the right sort of "working people" use.

MyNameIsX · 15/07/2025 18:38

EasternStandard · 15/07/2025 16:51

People won’t remember by autumn, or by next week even, the media will bring up Reeves promising not to raise taxes again after last budget.

Show quote history

You are probably right.

’Working people’, oh we meant ‘working people who would ordinarily vote Labour’….

EasternStandard · 15/07/2025 16:51

MyNameIsX · 15/07/2025 16:44

The Afghan fiasco is an Xmas present for Reeves.

She can bury so much shit in that.

I bet she’s crying again (with laughter this time).

People won’t remember by autumn, or by next week even, the media will bring up Reeves promising not to raise taxes again after last budget.

Boomer55 · 15/07/2025 16:46

Hulabalu · 13/07/2025 19:09

I paraphrase but she said she wanted to cut the ‘cash’ ISA allowance from 20k to a fraction of that but allow people to still do the 20k stocks & shares ISA. She said something like she wanted “peoples hard earned money put to work in the stock market”.
She gave ZERO thought to people’s attitude to risk, that they might not want to risk their money in stock market.
She just wanted people investing in UK companies to boost economy. Not that people would have necessarily invested in Uk stocks.
Thankfully the banks etc stepped in and stopped her stupid plan
But I now can’t stand the woman! How dare she try to “sell” her plan to us and take us for fools 😡

She’s useless, We all know that. Hopefully she’ll be reshuffled soon. Although the others aren’t much better. 🙄