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 really couldn’t give a shit one way or another.

Momentum condemns suspension of 3 MPs who voted against welfare bill as 'desperate act'

Momentum, the leftwing Labour group, has criticised the suspension of three MPs who voted against the welfare bill. A spokesperson said:
Suspending the whip from MPs who stood up for disabled people against cuts is a desperate act from a failing government that does not have the solutions to Britain’s problems.

This intolerant crack down on principled dissent, rather than changing course, is a pathetic response to dire poll ratings and threatens to tear apart not the Labour Left but rather the Labour party itself.

So, who is in the right? Starmer, or Momentum?

It's now 4 MP. Rachael Maskell is the 4th

Investing is a much better option. If you don’t want to? Don’t, but generate tax revenue instead.

Well as Momentum were single handedly responsible for the election of a bunch of incompetent Tories (people voted against Corbyn and Momentum not for the Conservatives) I think I am going to go with Starmer.

Politics is about getting your hands on the levers of power - something the Labour party miserably failed to do for years. You can’t change anything if you are not elected.

I pay enough tax, so no I won’t be investing when this begins - I’ll just put my money elsewhere to legitimately and lawfully avoid paying anymore than what I currently do. I have plenty of options.

Continue sticking your money into a cash ISA then and have it eaten away in value by inflation.

The only use for a cash ISA is for a quick access savings account that is tax free. Anything long term belongs in a S&S ISA. They don't teach this at school because the system wants you to stay poor .

This move has it have happened would have been one of the few things this government has actually got right. Now the Cash ISA allowance won't be changing I'm hoping there will be incentives or higher deposit limits for us sensible folk who know how to make the money work for them and get a real return that beats inflation.

Cash ISAs are nearly as crap as premium bonds, but I won't get started on those.

Thanks, my point was more how divisive this is for Labour, with Starmer caught between a rock and a hard object. Do nothing, and he appears weak. Withdraw the whip and he appears imperial, with the potential to harden future resolve in the back benches.

It’s a win/win for those of us who despise Labour.

Yet the advice is to also have 3-4 months salary saved in case of losing job. Plus rainy day savings etc. You need immediate access to that ICE. Not in a S+S ISA where value can fluctuate.
Generally, people with low levels of savings need immediate access over long term interest

Interesting you use ‘legitimate’.

A small data set admittedly, but we have had an increasing number of contractors asking for cash (and willing to discount).

Naturally, we have said ‘nothing doing’ but I can well imagine a boom in tax evasion, given the increasing tax burden.

Did you not ready my post? I literally said the only use for a cash ISA is for quick access tax free savings...

And that's the majority of people! Which is why S+S don't meet needs of majority. Very few people have luxury of affording putting money into S+S

I disagree, even chucking a tenner a month into a stocks and shares ISA over a ten year period would yield results far greater than a cash ISA.

for comparison, assuming a bank paid 3% PA and the user continues to move it around to get the same rate they'd have after 10 years:
£1394
in a stocks and shares ISA and invested in for example and ETF that tracks the S and P 500 over the same time period using the average annual return of 12.21% over the last decade:
£2243, approximately half would be growth.

There are so many funds that offer low exposure and offer far greater returns than the pittance any bank would pay, but few are educated enough to know about them.

Why so aggressive all the time?

If you feel a desperate need to rant and rage about previous governments numerous times a day, why not start a thread about that?

It's not my fault that Labour are a shower of shite.

Post of the day.

Shower of shit? a definite lack of aggression there! not! & an attempt to shut me down with insults.

Where have i been aggressive? i'm just countering your very pessimistic & one sided out look.... i'm so sorry you feel that way toward my post.

But perhaps we all need to allow a little more positivity and realism into our negative thoughts on the state of the country .... instead of blaming others for how they feel.

Agree

Playing devils advoate, why shouldn't you pay tax on your unrearned interest income? People are very keen to make sure that 'unearned' income from property and dividends is taxed, and taxed in line with income. Why should unearned income generated from cash be different?

Anyway, for teh time being at least it would still be pretty easy to avoid...just invest your S&S ISA in money market funds within the ISA wrapper and job done :)

And that's the majority of people! Which is why S+S don't meet needs of majority. Very few people have luxury of affording putting money into S+S

As the retirement age rises, and more crucially access to DC pension funds starts to move in line with state retirement age, S&S ISA are a key part of retirement planning,or indeed any long term savings for lots of people. And if we want to reduce dependancy on the state in old age need to be encouraged

The cummulative effect of compound returns at 8% tax free, vs interest at 4%, over 30 years is huge. If you save £1,000 a year for 30 years then you might have nearly £60k in cash, but you'd have £115k in S&S

She lied - shock horror. Of course she lied - the whole party stinks but its who the people voted for so we haven't really much choice, they wanted change, they wanted 'new' - they bought into KS and his absolute rubbish.. we will all now pay the price, what a shit show.

I don’t think that’s quite true, is it? It’s mainly in the 18-24 age group who don’t turn out to vote.

https://www.lbc.co.uk/politics/uk-politics/corbyn-sultana-party-labour-polling/

How can she have lied when no one can show the speech or press release where she said she'd cap cash ISA's?

The last 14 years was a stunning success .....

Lying? i give you Sunak and Wallace, wasting billions of tax payer money, allowing in 12000 undocumented Afghans and then withholding any scrutiny....

I suppose Labour will push the email thing for a few days, to cover inflation and whip news.

It’ll mostly benefit Reform though.

What “email thing”? The scandal of the Tories’ super injunction? You can’t just wave that away as if it doesn’t matter - the estimated cost of that is huge. And that’s before you even think about the attack on democracy.