Hands off our savings, Chancellor

The Chancellor Rachel Reeves has said that "hundreds of billions of pounds in cash ISAs are being siphoned away from the London Stock Exchange", fuelling another round of speculation that a cut to the cash ISA allowance could feature in the Autumn Statement. Her stated goal is to encourage more people to invest. But this raises a fundamental question: is it really the job of individual savers to prop up the economy?

We already pay our fair share in taxes. That money should be put to work to support the financial system and long-term economic growth. Redirecting blame towards cautious savers, many of whom are simply trying to protect their hard-earned money from inflation and uncertainty, feels misplaced. It also risks eroding public trust in one of the few savings tools that genuinely works for ordinary people.

I say this not as a seasoned investor, but as someone relatively new to the world of stocks and shares. Like many, I once thought investing was only for the wealthy. That changed when my daughter was born. On the advice of a friend, I opened a stocks and shares ISA for her and one for myself, wanting to give her future the best possible start.

Over the past year, the performance has been a rollercoaster. At times, our investments have outperformed our cash ISAs. But when former US President Donald Trump announced new tariffs, our stocks and shares ISAs plummeted into the red. For a moment, it felt as though I’d gambled with my daughter’s future. Although the market has since recovered, the return is still below half of the interest earned on her cash ISA.

I understand the case for long-term investment, and I see the potential. But that doesn't mean the government should be nudging savers away from security and into risk, especially when the rewards are far from guaranteed. Investment should be a choice, not a duty.

Cash ISAs offer peace of mind. They’re a rare example of a financial product that supports everyday people to build resilience. Undermining them in favour of boosting the stock market may serve short-term political goals, but it risks alienating those trying to do the right thing.

If we want a stable, confident economy, we need savers as much as we need investors. So, here’s a message to the Chancellor: keep your hands off our ISAs.