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

[Hulabalu]

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 😡

I usually look at my pension performance as a measure. I lost 20% of my pot between Covid and Truss, but made very decent gains over the past year.

Truss caused gilt yields to increase by 300%...

So far, under Labour, yields have gone from 4.2 to 4.5

Inflation 11% under Sunak, food inflation running at 30% too.... but of course that will be due to external factors... no such largesse given to Labour.

4 interest rate cuts under Reeves, helping reduce mortgage repayments.

Treading water on top of Labour policies already hitting businesses and individuals.

4 interest rate cuts in the last 12months are helping individuals and businesses.....

BoE say that the NI increases have led to smaller pay rises, leading to lower inflation... more rate cuts....

All we got under the Tories was interest rises.....

But you are better, in most cases, putting your money into a savings account with decent interest than a cash IS A. As I say the banks rip you off. Yes stocks aren't for everyone but I know people (because I worked for them) with tens of thousands in cash IS As and they won't invest in stocks because of the perceived risks yet they are in fact losing money as inflation is 2%ish and they are getting 1.5% (at best). Over the long run you will make money, in the short term maybe not.

If you need to access the money quickly shopping around should secure a better rate than most cash is as

The FTSE 100 Index is going well, near record level. However the FTSE 250 is not doing so well. Who will make the choice for you?
Every transaction earns Stamp Duty for the Treasury. Even within an ISA.
In USA no tax on shares, and no commission either.

FTSE all share, at record highs.... up 9% over the last 12 months.... .

Yes stamp duty on transactions needs reform.... hopefully this will be announced on thursday as part of measures to make the 'city more competitive....long over due.

There are some short (perhaps selectively so?) memories on here. It has only been possible to allocate one's full annual ISA allowance to cash savings accounts since July 2014. Prior to that - i.e. for more than half of the 26 year history of the ISA - the cash limit was lower. If the stories about the Reeves proposal are true, it is only restoring the idea that if you want to use your full ISA allowance then a proportion of it has to be in stocks and shares. And before ISAs, cash and equity investments were offered two completely separate tax-free wrappers and allowances.

Ultimately, I happen to agree that the government should not be offering incredibly generous tax breaks just for savings to sit in risk free cash accounts, if the idea is to stimulate the productive economy and deliver both growth and real (post-inflation) returns for investors. As a taxpayer, if I have to chose between subsidising risk-averse cash savers or stocks and shares investors, then I chose S&S investors every single time.

In all honesty though, I suspect that the histrionic reaction to the idea of reducing cash ISA allowances is because many people just don't understand investing and the markets and the "I just will not take any risks" attitude is actually a front for "I don't know any better". If people were better educated about finance, markets, and so on, and were personally invested in it, then there would be much less of an 'us and them' attitude. People would have far better understandings of decisions bosses make and of the consequences of irresponsible decision-making both at work and in government.

If things are going well as some believe then Reeves / Starmer won’t put up taxes in Autumn, as per statement after last tax and borrowing hike budget.

Good news then eastern, no tax rises yay!

Haha, great news then. No tax rises in the Autumn, no enormous black hole, no rising unemployment. It's all a myth.

If tax rises needed, it'll be to pay for things like the 2022 huge data breach in the Afghan resettlement scheme, costing £1billion, resulting in 1000s of Afghans coming here, legal costs etc... all of which Sunak tried to cover up with a "Super injunction...."

The amounts these people have cost the UK tax payer is off the scale... HS2 has a net cost to the Tax payer of £31 billion..... yet not a single train has even run on it yet & thats before we look at the cost cancelling the northern leg resulted in - around £28 billion.

Looks like the same will do someone else to blame.

I doubt the public will follow their sell.

What utter naivety.

You do post some nonsense.

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).

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

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.

You are probably right.

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

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.

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

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.

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.

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.

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.

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

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