Chancellor planning ISA 'overhaul', reports suggest

27 Sep 2023

Chancellor Jeremy Hunt is planning significant ISA reforms, according to recent reports.

The Chancellor is considering overhauling ISAs in order to help supercharge British business and encourage individuals to invest in UK firms.

Experts predict that Mr Hunt could increase the ISA allowance, while others believe that cash and stocks and shares ISAs may be merged.

An additional allowance that extends beyond the current £20,000 annual ISA limit could be introduced to allow individuals to back UK equites.

The Treasury aims to simplify the ISA regime and provide a boost to the UK stock market.

Commenting on the matter, James Watkins, Head of Policy at the London Chamber of Commerce and Industry, said: 'These proposals, subject to seeing the detail, could be a beacon of hope to help firms who are facing liquidity issues during this cost-of-living crisis.

'With Chancellor Jeremy Hunt announcing the Mansion House Compact to make it easier for pension funds to invest in British businesses, this latest step could at last help transform how Britain saves and invests in the future.'