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Treasury keeps £20,000 Cash ISA as tax burden rises

By Drooid · Oct 29, 2026 · How we work

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Summary

The Treasury kept the cash ISA allowance at £20,000 per year, overturning a planned cut to £12,000.
Michael Healy, IG Group consumer chief executive, called the decision a missed chance to shift savings into equities.
The Office for Budget Responsibility says the freeze will raise higher-rate taxpayers from 15% in 2021-22 to 24% by 2030-31.

Summary

Chancellor John Healey announced a £100 one-off payment for 20 million households, costing £2.6 billion.
He raised the bank corporation-tax surcharge from 3 % to 6 % for 15 months, expected to raise £1.5 billion.
He required online marketplaces such as Amazon and Temu to collect VAT at point of sale, projected to generate £265 million.
He pledged to close a £4.7 billion defence investment gap while maintaining a £15 billion budget.

Summary

Government approved the Jackdaw gasfield in the North Sea and launched an energy wealth fund for cheap clean power.
Warm Home Loans scheme will provide up to £35,000 government-backed loans for low-carbon home upgrades.
Boiler upgrade scheme offers grants up to £7,500 toward the £13,600 cost of installing a heat pump.
Households off the gas grid can receive up to £9,000 a year to replace high-cost heating oil.

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Treasury Keeps ISA

The Treasury kept the cash ISA allowance at £20,000 per year, overturning a planned cut to £12,000.
Michael Healy, IG Group consumer chief executive, called the decision a missed chance to shift savings into equities.
The Office for Budget Responsibility says the freeze will raise higher-rate taxpayers from 15% in 2021-22 to 24% by 2030-31.

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