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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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miffmufferedmoof · 15/07/2025 06:45

Hulabalu · 14/07/2025 21:56

Not necessarily….
You can live in London , save £20 k a year as a couple and still not be able to afford to buy a house while rent is becoming unaffordable…and by a certain age the banks won’t give you a mortgage…so retirement means you’re still paying extortionate rent from your pension …
No one has to live in London, but if that’s where your jobs are , your family are and your kids are at school here then …

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You might be right, but I wouldn’t have thought there would be a lot of people in that position. I don’t live in London though.

As well as the ISA allowance, don’t forget each individual can get up to £1000 interest (basic rate tax payer) or £500 interest (higher rate tax payer) each year tax free.

MoreChocPls · 15/07/2025 05:47

She is an absolute shit show. She’s screwing up this country try with starmer and his moronic government. And I only foresee it getting worse.

Original poster
Hulabalu · 15/07/2025 04:57

Jabberwok · 14/07/2025 22:12

I am to the right politically, dislike reeves, but she's got a point for the following reasons:
1 over time the stock market has always provided greater returns than banks accounts
2 it would stimulate the economy to a small degree
3 the banks provide really crap IS A rates after the first year. Millions of £s are sitting there earning 0.1% interest. People are often financially naive and lazy in moving money. The banks exploit this
4 there are low risk, admittedly, low return stocks and shares investments such as gilts and government bonds. But would still return more over 4 years than a cash IS a
5 stocks and shares IS As are very flexible so you can opt for different levels of risk...for example 10 years ago when I was 45 it was much more adventurous investments than now when I'm retired

the whole aim of IS As or PEPs as they were was.to encourage buying of stocks and shares with a wrap around packaging so that people saved.

What if bond market is down & you lose cash you need quick access to eg for property deposit ?

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Jabberwok · 14/07/2025 22:12

I am to the right politically, dislike reeves, but she's got a point for the following reasons:
1 over time the stock market has always provided greater returns than banks accounts
2 it would stimulate the economy to a small degree
3 the banks provide really crap IS A rates after the first year. Millions of £s are sitting there earning 0.1% interest. People are often financially naive and lazy in moving money. The banks exploit this
4 there are low risk, admittedly, low return stocks and shares investments such as gilts and government bonds. But would still return more over 4 years than a cash IS a
5 stocks and shares IS As are very flexible so you can opt for different levels of risk...for example 10 years ago when I was 45 it was much more adventurous investments than now when I'm retired

the whole aim of IS As or PEPs as they were was.to encourage buying of stocks and shares with a wrap around packaging so that people saved.

Original poster
Hulabalu · 14/07/2025 22:05

AlastheDaffodils · 14/07/2025 17:10

It probably is in their interests, unless those savings are short term. Keeping your money in cash savings is a sure fire way to have it eroded by inflation over the long run. Investing is riskier in the short run but safer in the long run, because it’s more likely to beat inflation. If you’re saving for 20+ years then, with some exceptions, a cash ISA is probably a really bad idea.

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Yes but if it’s relatively short term & you really can’t risk losses …

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Jennps · 14/07/2025 22:04

Notreallyme27 · 14/07/2025 19:59

”Crashed the economy”?

The FTSE closed tonight on a record high.

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Gilt yields are higher than under Liz Truss. Debt to GDP ratio is highest ever. Food inflation is running at nearly 10%. Unemployment is rising. And top rate taxpayers are leaving the country at an alarming rate.

Yeah, crashed the economy.

Original poster
Hulabalu · 14/07/2025 22:01

mylovedoesitgood · 14/07/2025 19:03

No, what I disagree with is that cash ISA savers can afford to save £20k every year.

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What if they can but still can’t afford to buy a family home in London ?

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Original poster
Hulabalu · 14/07/2025 22:00

miffmufferedmoof · 14/07/2025 19:30

Yes - so the point is, if she cuts the yearly allowance to £4k, that will only be detrimental to pretty rich people. Say a couple saves £4k each per year in ISAs from the age of 30-60, that’s £240,000 tax free savings (plus interest of course). That’s quite a lot.

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What if said couple can’t afford to buy a family home & need the cash ISAs to save & avoid tax on interest?

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Original poster
Hulabalu · 14/07/2025 21:59

Alexandra2001 · 14/07/2025 21:27

You've zero evidence either she or anyone else in authority said cash ISA's should go, have you?

Its all made up crap, done by people with little better to do with their time.

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It’s all over the news ! You only have to look . Are the BBC and Martin Lewis and the broadsheet newspapers all reciting made up crap? I don’t think so!!

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Original poster
Hulabalu · 14/07/2025 21:56

miffmufferedmoof · 14/07/2025 17:52

I think people who are rich enough to save £20k each year (£40k if you’re a couple) don’t need tax relief on the interest

Not necessarily….
You can live in London , save £20 k a year as a couple and still not be able to afford to buy a house while rent is becoming unaffordable…and by a certain age the banks won’t give you a mortgage…so retirement means you’re still paying extortionate rent from your pension …
No one has to live in London, but if that’s where your jobs are , your family are and your kids are at school here then …

OP posts:
Alexandra2001 · 14/07/2025 21:29

mylovedoesitgood · 14/07/2025 19:03

No, what I disagree with is that cash ISA savers can afford to save £20k every year.

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Plenty can, easily.

The ordinary tax payer then subsidises their tax free savings.

Alexandra2001 · 14/07/2025 21:27

Hulabalu · 14/07/2025 17:50

Whether she publicly announced it or leaked it to test responses she said it…
How naive can you be ?!

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You've zero evidence either she or anyone else in authority said cash ISA's should go, have you?

Its all made up crap, done by people with little better to do with their time.

Notreallyme27 · 14/07/2025 19:59

Jennps · 14/07/2025 18:55

Rachel from Accounts has crashed economy and is now scrambling around for whatever way she can find to plug the hole. The Tories were disastrous, this shower of shite gives a whole new meaning to incompetent.

Not sure why people are complaining. You voted for this. Now enjoy sky high taxes, a tanking economy, higher unemployment, higher inflation.

”Crashed the economy”?

The FTSE closed tonight on a record high.

miffmufferedmoof · 14/07/2025 19:30

mylovedoesitgood · 14/07/2025 19:03

No, what I disagree with is that cash ISA savers can afford to save £20k every year.

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Yes - so the point is, if she cuts the yearly allowance to £4k, that will only be detrimental to pretty rich people. Say a couple saves £4k each per year in ISAs from the age of 30-60, that’s £240,000 tax free savings (plus interest of course). That’s quite a lot.

mylovedoesitgood · 14/07/2025 19:03

miffmufferedmoof · 14/07/2025 18:53

So you agree with me? That the £20k allowance is unnecessarily high?

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No, what I disagree with is that cash ISA savers can afford to save £20k every year.

Jennps · 14/07/2025 18:55

Rachel from Accounts has crashed economy and is now scrambling around for whatever way she can find to plug the hole. The Tories were disastrous, this shower of shite gives a whole new meaning to incompetent.

Not sure why people are complaining. You voted for this. Now enjoy sky high taxes, a tanking economy, higher unemployment, higher inflation.

miffmufferedmoof · 14/07/2025 18:53

mylovedoesitgood · 14/07/2025 17:58

Suggesting that ISA savers can save £20k every year is a ridiculous stretch.

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So you agree with me? That the £20k allowance is unnecessarily high?

WestwardHo1 · 14/07/2025 18:47

MyNameIsX · 14/07/2025 18:22

Well, the good news is.

I absolutely stand behind it.

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Well I'm glad your face doesn't impact your ability to do a job.

Savage her ability by all means. God knows I'm no fan of hers. But being offensive about her looks cheapens your argument.

MyNameIsX · 14/07/2025 18:39

See the majority of my posts - firmly playing the ball.

Incidentally, when my last DD was born, my DH bought me a case of Krug. It’s ready now, but will keep for a few more years. As soon as this shower of shit are out of government, I shall honestly be breaking out a bottle.

Right, heading out for a run.

Laters!

pinotnow · 14/07/2025 18:34

MyNameIsX · 14/07/2025 18:22

Well, the good news is.

I absolutely stand behind it.

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Right. So what were you saying about playing the ball?

pinotnow · 14/07/2025 18:34

@IthasYes I don't think anyone is going to be forced to put their money anywhere, are they?

MyNameIsX · 14/07/2025 18:22

WestwardHo1 · 14/07/2025 18:19

Despise her for her policies if you wish but "hatchet faced creature" says more about you than her.

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Well, the good news is.

I absolutely stand behind it.

mylovedoesitgood · 14/07/2025 18:19

Notreallyme27 · 14/07/2025 18:03

Nobody is being forced to invest in S&S ISAs. If you want the tax-free benefits you can take the risk. If you don’t, put your money in a bank account and pay a bit of tax on your interest instead.

If you’re potentially going to have to pay huge amounts of tax on your interest, you’re rich enough that you don’t need the UK taxpayer to fund your tax breaks.

Just remembered that instead of savings accounts where you’ll have to pay tax, Premium Bonds are an option, if you haven’t already maxed out your PBs holding. All those prizes are (happily) tax-free.

WestwardHo1 · 14/07/2025 18:19

MyNameIsX · 14/07/2025 04:30

Reeves is an over-promoted, cv-embellishing, self-pitying cry baby, who genuinely does not have a clue.

She only remains as Chancellor to be Starmer’s flak shield.

The October budget will probably prove the end of the hatchet-faced creature, however.

Despise her for her policies if you wish but "hatchet faced creature" says more about you than her.

IthasYes · 14/07/2025 18:18

Oh reforms biggest recruiter has arrived..

@pinotnow
I invest and the ftse has done well actually but she's gone about this whole thing backwards

No one should be forced to put their money into one small slice of the stock market it's like making everyone buy from the Devon cheese company at your Xmas fair when in fact there is cheese there from all over the world

Educate us all on the markets, get rid of the crap maths syllabus for lowly maths s! tudents and teach investing properly.

As you said imagine if your relative and everyone like her had invested that money!
Having said that I'd be surprised if your dc was soley invested in the UK markets