Boost for investing21 Feb 2025 07:46
Courtesy of VAL board
The chancellor said on Thursday she wanted to create ‘more of a culture in the UK of retail investing like you have in the US, to earn better returns for savers’. Photograph: Peter Cziborra/AP
More than 18 million people have a cash Isa, and there is almost £300bn sitting in them, but earlier this month the new economic secretary to the Treasury, Emma Reynolds, spoke about the need to drive an investment culture “that realises cash is not a good investment”, adding: “Why do we have hundreds of billions of pounds in cash Isas?”
This was first reported by the Telegraph, and Reeves later signalled that changes could be on the way. Asked about the proposal on Thursday, she told broadcasters: “At the moment, there is a £20,000 limit on what you can put into either cash or equities, but we want to get that balance right.” She added that she wanted to create “more of a culture in the UK of retail investing like you have in the US, to earn better returns for savers”.