Unintended consequences from Labour’s bonkers policies - no.84
Building societies have warned that cutting the annual cash Isa allowance could hit mortgage lending and lead to 60,000 fewer home loans a year in a blow to first-time buyers.
The Building Societies Association said that reducing the annual cash Isa limit from £20,000 to as low as £5,000 could shrink their members’ mortgage supply by 5 per cent, equivalent to about 17,000 mortgages. First-time buyers would be worst affected, as this type of lending is deemed riskier, the trade body said.
Reeves assuming that much of the foregone cash ISA allowance will simply be reallocated to UK shares….muppet.