Industry Calls on Chancellor to Preserve Cash ISA Allowance
More than 50 building societies and financial institutions have signed an open letter urging Chancellor Rachel Reeves to protect cash ISAs and retain the current £20,000 annual tax-free allowance.
This appeal follows speculation that Reeves may cut the cash ISA limit in her upcoming Mansion House Speech, part of a broader effort to steer savers towards investment products.
Signatories of the letter include major names such as Nationwide, Skipton Group, Yorkshire Building Society, and Hargreaves Lansdown. They described cash ISAs as a vital component of personal savings for millions, warning that any reduction in the allowance could discourage savers and weaken confidence in the scheme.The letter argues that the main barriers to investment are psychological, not structural, and that boosting confidence and education around investing is more effective than reducing saving options. “Limiting cash ISAs won’t make people more willing to take on risk,” the letter states, adding that such a move would only complicate the ISA system and hinder flexibility between saving and investing.
According to HMRC data, over 18 million people hold a cash ISA, with nearly half belonging to individuals earning less than £20,000 a year. The average balance held in these accounts is just under £13,400.Beyond individual savers, the letter emphasises the broader economic role of cash ISAs. Deposits in these accounts help fund loans provided by banks, building societies, and credit unions, which support both consumers and businesses. The letter warns that lowering ISA limits could reduce this funding pool, potentially increasing the cost and reducing the availability of loans.
Robin Fieth, Chief Executive of the Building Societies Association, highlighted the diverse uses of cash ISAs—from saving for a first home to managing retirement finances—and noted that these funds are not idle, but play a practical role in the financial ecosystem.
The letter concludes by urging the government to not only maintain the current ISA limit but also launch a public education campaign to promote the benefits of both saving and investing.
Anna Griffiths – Clear Technical ManagerSome good news….
Fastest rate of service sector growth for 10 months
UK service providers recorded a sustained expansion of business activity in June. The latest upturn was the strongest since August 2024. This was supported by a marked improvement in the order books.
Not so good news….
UK Construction output declines slightly in June
Construction companies indicated a marginal reduction in business activity during June, that’s despite a return to growth in residential building work. But orders did decrease at an accelerated pace. This contributed to the weakest degree of business optimism across the construction sector for two and half years.
Pricey pineapples
After the Wimbledon Lawn Tennis Championship, there was lot of talk, not about the tennis, but more about the trophy, in particular the pineapple on top of the trophy. People were curious about its meaning and history.
It’s not just at Wimbledon, if you look closely you can see evidence of an obsession with this fruit. Lambeth Bridge has pillars at each end topped with pineapples. Golden pineapples on the railings at Devonshire Square.
Also, what is at the top of the south towers of St Paul’s Cathedral?…..pineapples!
It’s not just London of course. In the 1700s, pineapples were the ultimate luxury good. They were basically impossible to import from the “New World” without them rotting – only one or two might make the journey across the Atlantic in a fit state to be eaten. The ones that did ended up on the royal tables of Europe where not only being unusually delicious, they were rare and priceless. If Kings have it, all the lords and ladies want it too!
They started building greenhouses (called “pineries”) to grow their own – at Kew Gardens, Hampton Court Palace and Kensington Palace. In 1764, it cost about £80 to grow a single pineapple – roughly £12,000 in today’s money. Rich families served the fruit at dinner parties, less well-off ones would simply have a pineapple on the table, often re-using it multiple times! They could also be rented for the evening! Pineapple equalled wealth and luxury.
With the coming of steamships, canning and refrigeration, by 1822 a pineapple could be bought for approximately 25p in today’s money. The rare becomes the everyday – or does it?
Del Monte currently has a “special” red pineapple available for $395, tastes just like being back in the 17th century, we assume.
Source: 7IM
UK Jobs Report
- Supply of labour expands at steepest rate since November 2020
- Permanent placements drop at fastest pace in 22 months
- Pay growth weakens or permanent and temporary staff
Source:KPMG and REC
Welcome to Zamrock
Over the last few weeks there has been plenty of talk about copper.
It’s due to a strange situation occurring since the beginning of the year on different sides of the Atlantic, and most notably in the past few weeks:
Source: FactSet
Basically, a big lump of copper in New York is worth nearly $3,000 MORE in the US than it is in London. If you’ve got a few tons lying around, might be worth looking into chartering a freight ship.
The reason for the price difference, is, if you haven’t guessed, Donald Trump. Since the start of the year, there have been worries about tariffs; last week, the other shoe dropped for copper. 50% tariff on imports to the US, coming soon to a border near you.
Price spike in New York (people stockpiling ahead of the tariffs) and a fall in prices in London (lots more copper for sale globally, and so in locations where there’s less demand, cheaper prices). The difference between real world commodities and financial instruments like shares is that you genuinely need copper to make things, so you need to have the physical metal in your factories. Making things like electric vehicles, microchips for phones, washing machines and many more. It’s a case of location, location, and the US doesn’t have enough being mined so it has to go elsewhere.
Source:MinEx
Now let’s consider what the impact on rock music would be.
In 1964 Zambia was a new independent nation ready for a fresh new future propelled by minerals. Wealth followed that was copper based. With rock music sweeping the developed world, the sales of Fender electric guitars and Orange amplifiers in Zambia exploded, with the hope of producing their very own Led Zeppelin or Rolling Stones! Thus, Zamrock was born.
Unfortunately, the Zambian economy did not maintain it’s trajectory, but the band W.I.T.C.H (We Intend To Cause Havoc) and Zamrock are still around today. You may have missed them at Glastonbury, but they are back in London in November.
Interesting how the geographic lottery of natural resources can bleed into culture so quickly. Another example is the high-tech cities of the Middle East.
Source:7IM@7am
