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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:
Thread gallery
5
Sadcafe · 14/07/2025 18:15

We all have a right to decide how risk averse we are, not being given the option to gain the benefits of an isa without potentially risking the capital is, in my humble opinion, unacceptable

MyNameIsX · 14/07/2025 18:12

Love the old green-eyed monster rearing its head.

All rather inevitable.

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.

MyNameIsX · 14/07/2025 18:02

pinotnow · 14/07/2025 17:56

Good to see some self-awareness.

Show quote history

I am most definitely playing the ball, my friend.

mylovedoesitgood · 14/07/2025 17:58

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

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

pinotnow · 14/07/2025 17:56

MyNameIsX · 14/07/2025 17:51

@Hulabalu

Certain posters have an axe to grind - regardless of reality.

Good to see some self-awareness.

MyNameIsX · 14/07/2025 17:54

Reeves is a human shield.

She will be vulnerable on or around the October budget.

EasternStandard · 14/07/2025 17:52

Summerartwitch · 14/07/2025 17:13

I voted Labour and I think that Reeves is totally out of her depth as chancellor and is in fact a danger to the economy.

It has been one disastrous idea after another under her 'leadership'.

Starmer needs to get rid of her.

Edited

He’s just as accountable. It’s probably why he hasn’t got rid of her, so far.

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

MyNameIsX · 14/07/2025 17:51

@Hulabalu

Certain posters have an axe to grind - regardless of reality.

Original poster
Hulabalu · 14/07/2025 17:50

Alexandra2001 · 14/07/2025 17:43

Good, glad we have corrected the OP and her mis information, Reeves never said it did she?

Much like the reports that single person households would lose the council tax discount pre GE.... all made up.

The banks then campaigned on these reports, they of course benefit massively from the tax payer funded tax breaks we give people with very large ISA holdings.

How can anyone U-Turn on something that they haven't even announced????

You are just making things up now.

Edited
Show quote history

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

OP posts:
Original poster
Hulabalu · 14/07/2025 17:49

mylovedoesitgood · 14/07/2025 17:47

She’s done a u-turn, but if it eventually happens, then this is nothing to do with her wanting to grow the economy. She knows that most Cash ISA savers are risk averse and therefore have no inclination to put their five figure cash sums into S&S ISA’s and will instead put that money into savings accounts where the interest will be liable for tax.

Exactly !!! If you need to keep it in cash for some reason then you will and then interest would get taxed

OP posts:
mylovedoesitgood · 14/07/2025 17:47

She’s done a u-turn, but if it eventually happens, then this is nothing to do with her wanting to grow the economy. She knows that most Cash ISA savers are risk averse and therefore have no inclination to put their five figure cash sums into S&S ISA’s and will instead put that money into savings accounts where the interest will be liable for tax.

Alexandra2001 · 14/07/2025 17:43

MyNameIsX · 14/07/2025 17:39

You know, and we all know, Labour have a habit of ‘testing’ proposed policies with the public and markets, before firming them up.

Reeves u-turned on her proposed ISA reforms following a backlash.

How do you think lending banks felt about her plans???

Show quote history

Good, glad we have corrected the OP and her mis information, Reeves never said it did she?

Much like the reports that single person households would lose the council tax discount pre GE.... all made up.

The banks then campaigned on these reports, they of course benefit massively from the tax payer funded tax breaks we give people with very large ISA holdings.

How can anyone U-Turn on something that they haven't even announced????

You are just making things up now.

MyNameIsX · 14/07/2025 17:40

pinotnow · 14/07/2025 17:39

She hasn't lied, she's just presented one reason for the idea that she thinks will most appeal to people. I don't know that she's denied the potential benefits to the economy has she? Why would she? There's nothing wrong or shameful about her as chancellor wanting to introduce strategies to grow the economy is there? That would benefit us all if that were to happen.

For long-term savings most people would be better off using stocks and shares ISAs, and people stamping their feet and saying, 'But I'm risk averse, how dare the government try to encourage me to do something that will most likely benefit both me as an individual and the country as a whole?' doesn't change that.

We have a family friend who tries to make out I'm some kind of over-privileged money-bags because she found out through our dc that mine have thousands in their trust fund and hers have around £350 each as she didn't put them in stocks and shares ISAs, despite the government leaflet advising that course of action because 'when you're poor you can't take any risks with money.' Bullshit. She's from the same kind of background as me and had access to the same info as me when she chose to out hers in the building society and wasn't in a position to add to it. Some people take great offence at being given any advice or information that doesn't fit into their existing world view and seem to get very angry about it, with the word patronising being very over-used in these situations. See also Brexit for the dangers of this attitude.

@MyNameIsX Did you feel your money was safe in the UK economy during the last government's tenure, under Truss?

YES.

By money - I mean cash, investments, assets - FX, you name it.

ItsFineReally · 14/07/2025 17:40

MyNameIsX · 14/07/2025 17:34

She didn’t, but when you invest in an equities ISA, the fund may well have exposure to UK equities, of course. Reeves plans to compel these funds to invest a certain percentage in UK investments.

The ISA is merely the wrapper, as you know.

Show quote history

You are conflating the mooted idea for the mega pension funds for local government schemes and the treatment of ISAs.

You would still be able to purchase just the S&P500 if you were so inclined.

MyNameIsX · 14/07/2025 17:39

Alexandra2001 · 14/07/2025 17:37

Err where did Reeves say this? Can you point to the speech where she announced the reduction in Cash ISA amounts?

As i understand it, it was based on "Leaked Treasury reports"

So a scare story.

Show quote history

You know, and we all know, Labour have a habit of ‘testing’ proposed policies with the public and markets, before firming them up.

Reeves u-turned on her proposed ISA reforms following a backlash.

How do you think lending banks felt about her plans???

pinotnow · 14/07/2025 17:39

She hasn't lied, she's just presented one reason for the idea that she thinks will most appeal to people. I don't know that she's denied the potential benefits to the economy has she? Why would she? There's nothing wrong or shameful about her as chancellor wanting to introduce strategies to grow the economy is there? That would benefit us all if that were to happen.

For long-term savings most people would be better off using stocks and shares ISAs, and people stamping their feet and saying, 'But I'm risk averse, how dare the government try to encourage me to do something that will most likely benefit both me as an individual and the country as a whole?' doesn't change that.

We have a family friend who tries to make out I'm some kind of over-privileged money-bags because she found out through our dc that mine have thousands in their trust fund and hers have around £350 each as she didn't put them in stocks and shares ISAs, despite the government leaflet advising that course of action because 'when you're poor you can't take any risks with money.' Bullshit. She's from the same kind of background as me and had access to the same info as me when she chose to out hers in the building society and wasn't in a position to add to it. Some people take great offence at being given any advice or information that doesn't fit into their existing world view and seem to get very angry about it, with the word patronising being very over-used in these situations. See also Brexit for the dangers of this attitude.

@MyNameIsX Did you feel your money was safe in the UK economy during the last government's tenure, under Truss?

Alexandra2001 · 14/07/2025 17:37

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 😡

Err where did Reeves say this? Can you point to the speech where she announced the reduction in Cash ISA amounts?

As i understand it, it was based on "Leaked Treasury reports"

So a scare story.

Original poster
Hulabalu · 14/07/2025 17:36

diterictur · 14/07/2025 17:20

The real problem is that the public do not seem to understand that you can't have European public services with American levels of tax.

The fact is that we do need to raise taxes to have decent public services, especially after 15 years of the Tories squeezing the public sector

The question is where those taxes should fall. The ridiculously histrionic reaction to the winter fuel payment shows how difficult this is.

I do think this government has not shown the leadership it should have done - they should have gone a lot further and scrapped the triple lock on pensions but they didn't have the guts.

I think we pay more taxes than usa don’t we ? Probably less than Europe such as NL though

OP posts:
ilovesooty · 14/07/2025 17:36

Hulabalu · 14/07/2025 15:42

If you don’t understand then maybe just don’t comment ?!

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She didn't say she didn't understand.

MyNameIsX · 14/07/2025 17:35

diterictur · 14/07/2025 17:32

Yeah but the alternative is basically slow decline of our public services .. but I guess that's what the British public deserves at this point..

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UK productivity is comparatively weak.

Original poster
Hulabalu · 14/07/2025 17:35

diterictur · 14/07/2025 17:32

Yeah but the alternative is basically slow decline of our public services .. but I guess that's what the British public deserves at this point..

Show quote history

Why?

OP posts:
Original poster
Hulabalu · 14/07/2025 17:34

MyNameIsX · 14/07/2025 17:09

The point is this.

Reeves is being disingenuous (again). The real reason she wants to ‘reform’ pensions, is to create mega funds, which will be compelled to invest a certain percentage of their capital in UK infrastructure projects etc. Similarly, with the proposed change to ISA’s - irrespective of whether its the right investment decision for the investor and/or offers the best returns.

I have been cutting my exposure to UK equities, and will continue to do so, given the utter horlicks Labour are making with the economy.

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Yes this !!

OP posts:
MyNameIsX · 14/07/2025 17:34

ItsFineReally · 14/07/2025 17:28

@MyNameIsX Similarly, with the proposed change to ISA’s - irrespective of whether its the right investment decision for the investor and/or offers the best returns.

I didn't see anything in the proposals suggesting she was limiting S&S ISAs to be UK only equities.

She didn’t, but when you invest in an equities ISA, the fund may well have exposure to UK equities, of course. Reeves plans to compel these funds to invest a certain percentage in UK investments.

The ISA is merely the wrapper, as you know.