Rachel Reeves has been appointed to reduce ISA Cash allowance

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It is expected that the UK Chancellor Rachel Reeves will announce plans to reduce the annual tax -exempt -exempt monetary allowance in her speech at Dar Al -Qasr next month, in an attempt to transfer some of the 300 billion pounds of cash stack to British companies.

Government officials said Reeves is planning to determine an annual limit for international cash strains at a lower level than the current total ceiling of 20,000 pounds annually on the amount that the British can protect from taxes in individual savings accounts.

Previously, the chancellor promised not to reduce the total amount that the public could invest in taxes every year, for example in stocks and stocks, but she did not rule out a minimum status for the money that was placed in the cash ISAS.

Reeves believes that the plan will create a set of new investment in London -listed companies, which enhances the stock market, by encouraging savers to shift from cash to stocks, according to officials. They said that the advertisement was likely in the speech of Reeves’s house palace on July 15.

This step will determine the largest comprehensive reform of the ISA system because it entered into force in 1999 under the then consultant Gordon Brown. This comes at a time when the stock market in London suffers from a dehydration of the company’s factors, and while investors withdraw their money from the stock funds in the UK.

The issue was the subject of the bad pressure between the city’s companies in favor of reducing the critical seafarers standards such as brokers, investment banks, asset managers and companies such as Building societies, who use cash savings To finance loans.

Earlier this year, the government discussed reducing the threshold of the ISA monetary component to 5,000 pounds, according to the city’s numbers.

But one of Whitehall is aware of the negotiations that the ministers were listening to the anti -preserving the threshold higher. They added that the discussions are still taking place about the exact level of the government.

Cash is largely the most popular ISA products, which include stocks, stocks and other versions related to alternative investments and providing a house.

“I want people to get a better return on their savings, whether it is in a pension or their daily savings,” Reeves said. She added that she will not “reduce the limit of ISA by a value of 20,000 pounds,” but she did not exclude the reduction of the ISAS cash allowance specifically.

The Treasury official confirmed that the government “is looking for options for reforms for ISAS that gets the balance between cash and shares.”

Although investments tend to The money exceeds In the long run, consumers and construction groups have argued that reducing money would not necessarily change people’s financial customs and warned that it would be difficult to guarantee cash flows to the shares listed in London.

“Not everyone is in a position in which they allow them to invest in investment,” said Susan Allen, CEO of the Yorkshire Construction Association. “In many cases, our customers reserve criticism to pay the price of life events such as a wedding or move to the home.”

One of the industry experts said: “What is focused on (the treasury) is completely – I say obsessed – is the critical side, because there are nearly half a trillion cash that can be published in economy“

The plans are expected to be determined in the “financial growth strategy and the capacity of competitiveness” that will be published by Reeves alongside the speech of its palace’s home.

Another financial services expert said that although the Treasury was not usually consulted with ISA allocations, the industry is likely to consult “mechanics”, any changes to ISAS.

The new policy of financial behavior is expected to be “providing targeted support” to help Saves investment part of its discourse.

The ministers are also considering allowing long -term asset funds within ISA, so that investors can reach private markets, such as infrastructure, within an effective tax cover, according to the head of financial services. Government officials refused to comment on this possibility.