Caitlyn Eastell, spokesman at financial analyst Moneyfacts, said: “Rachel Reeves remains focused on growing the UK economy so Isa reform could still be on the table, but it is crucial that any undue risks that discourage savings are avoided.”
The small print in the Spring Statement document read: “The Government is looking at options for reforms to individual savings accounts that get the balance right between cash and equities to earn better returns for savers, boost the culture of retail investment and support the growth mission.”
One proposal popular with City bosses is for the annual cash allowances to be cut from £20,000 to just £4,000 – just a fifth of what it is currently.
There are four main types of Isa: cash, stocks and shares, lifetime Isas, and innovative finance Isas.
Isa limits were originally set at £7,000 when the savings accounts were introduced by Gordon Brown, the former chancellor, in 1999. If the limit had increased with inflation, it would now be £13,165.
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