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The major city companies Rachel Reeves urge the expansion of tax exemptions to save the ISAS cash, a form of saving millions of Britons, in an attempt to enhance financial services in the United Kingdom and the economy by directing money to stocks.
Companies that include the Insurance Group and the London Stock Exchange Group told the advisor that approximately 300 billion pounds in cash can generate better returns for savings if they are invested in stocks and stocks, while supporting the decreasing stock market in the city.
A senior banker said that the case was raised by many financial executives at a recent meeting with Reeves and that it did not reject the idea.
“The state should not give a tax break to all of us to stop our money in cash,” said Andy Brigz, CEO of Phoenix, who runs the standard life mark.
“I hope so Rachel Reeves Brigz, who was at the meeting, added that it is logical to re -focus the ISA tax incentives to make them consistent with the government's welcoming growth agenda.
The cancellation of the ISA cash will be the largest savings market disposal of the products for the first time by the consultant full of suitability Gordon Brown in 1999.
Cash Isas Saves allows a tax -exempt benefit to up to 20,000 pounds per year, which is the most popular in ISAS in the United Kingdom. Investigative studies show that many Britons prefer to maintain wealth in cash Instead of investing In the stock market because they see it as safer.
“They also love the idea that it can provide growth for their asset management weapons. They say that there is a great deal of capital that can do a lot,” said one of the cabinet employees who pressed the cancellation of the embodiment of the city's companies by city companies.
People close to discussions said that Reeves will be reluctant to change a form of savings, but the idea has not been excluded.
Another official said: “They are very important products for many people, so changing Korea's monetary will be very big,” said another official.
The United Kingdom offers many different ISAS, including a producer and another for shares and shares
But the financial services industry has sparked fears that Cash Isas is money that can earn more in London -listed companies with the support of capital markets in the United Kingdom. Banks gain fees by helping companies sell shares to retail investors and investors, while asset managers in recent years have suffered from investors who are withdrawing money from stock funds in the United Kingdom.
Stephen Fine, CEO of Investment Bank, told FT FT that he was “constantly in contact” with the Treasury on ISA reform, “ideally to restrict money or remove cash, with the balance in the shares and shares listed in London.”
Another banker said that the government can limit the amount of money held inside ISA, for example, up to 5,000 pounds, while the remaining part of the shares and stocks can be held.
The head of the UK assets, the industry calls for Isa reform, noting that there should be “one ISA, encourages people to allocate more British stocks and stocks.”
The Treasury said: “We want to help people provide their future goals and build greater financial flexibility throughout the country. We maintain all aspects of the savings policy under review.”
According to a LSEG spokesman, the group was not at the meeting with Reeves as the ISAS topic was discussed.
About 14 million British ISA holders of 22 ml in the UK keep the ISAS money alone, according to HM data analysis and customs, from 2021-22, by AJ Bell, a financial platform. There were about 4.2 million investors who only retain shares, ISAS and 3.6 million shares with cash, shares and shares.
Of 726 billion pounds in the adult ISAS, 431 billion pounds are kept in stocks, stocks and the rest in cash, according to the AJ Bell analysis of HMRC data for 2022-23.
