Cutting cash Isa limit will not boost stock market, MPs warn Rachel Reeves

The Guardian•Friday, October 24, 2025 at 11:01:17 PM

MPs are cautioning that reducing the cash Isa limit in the upcoming November budget won't necessarily lead to more investments in the stock market. Instead, they warn it could result in higher mortgage rates, which would impact many homeowners. Currently, a significant portion of Isa contributions is directed towards cash savings rather than stocks, indicating that simply changing the allowance may not shift investor behavior. This discussion is crucial as it highlights the potential unintended consequences of fiscal policy on the housing market and personal finances.

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