The Chancellor, Rachel Reeves, stated that she will continue to "consider further changes" to ISAs in her Mansion House speech last night.

There had been speculation that the Chancellor would cut the cash ISA tax-free allowance from £20,000 a year to £4,000, but this was not included in her speech.

However, Reeves said that she recognises the potential for ISA reforms to "improve returns for savers" and for UK businesses to access capital.

She stated: "I will continue to consider further changes to ISAs, engaging widely in the coming months and recognising that despite the differing views on the right approach, we are united in wanting better outcomes for both UK savers and for the UK economy."

Reeves added that the UK has "presented investment in too negative a light" for too long, with savers being warned of the risks of investing without being given "proper weight to the benefits".

As a result, the Chancellor said that the Government is working with the FCA to introduce a new type of targeted support for consumers ahead of the new financial year.

It comes as the BBC reported that the Government will start to target savers with low-interest cash accounts next year with offers to invest in stocks and shares instead.

Alongside the speech, Reeves unveiled changes to the first-time buyer market as part of the Leeds Reforms, including the Mortgage Guarantee Scheme becoming made a permanent fixture and the Bank of England increasing lending to over 4.5 times a buyer’s income.

Head of personal finance at Moneybox, Brian Brynes, said that he welcomed the changes announced in the Mansion House speech.

He concluded: "Cash ISAs are not, and never have been, a blocker to investing—they’re a gateway. We’re pleased to see evidence of an increased focus on consumers, and finding the right balance between cash savings and investing for long term growth, rather than cutting allowances that motivate and reward positive saving behaviours and help people become financially resilient.

"We fully support the Government’s ambition to foster a stronger investment culture in the UK and while our research shows that there is an appetite to invest amongst most savers, people are held back by fear of financial loss, a lack of confidence and limited knowledge.

"Initiatives like the Advice Guidance Boundary Review, the Pensions Investment Review, easing overly cautious risk warning regulations along with consumer education campaigns will all be key to breaking down the barriers and building a nation of confident investors."

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