Healey poised to overturn cut to cash Isa allowance in first budget

<p>Chancellor’s predecessor Rachel Reeves had planned to reduce allowance from £20,000 to £12,000 a year from April </p><ul><li><p><a href="https://www.theguardian.com/business/live/2026/oct/28/john-healey-budget-standing-charges-gas-city-bonds-pound-latest-news-updates">Business live – latest updates</a></p></li><li><p><a href="https://www.theguardian.com/uk-news/2026/oct/28/what-to-expect-from-john-healeys-first-budget-who-wins-who-pays">What to expect from the budget: who wins, who pays?</a></p></li></ul><p>John Healey is to use his first budget to ditch plans to slash the annual cash Isa allowance, the Guardian understands, preferring a carrot rather than a stick to encourage people to invest more in shares.</p><p>City experts welcomed news that the chancellor will overturn a decision by his predecessor, Rachel Reeves, to <a href="https://www.theguardian.com/money/2026/apr/29/rachel-reeves-tax-shake-up-isas-self-assessment">cut the allowance</a> from £20,000 to £12,000 a year from April to get more money flowing into UK company stocks.</p> <a href="https://www.theguardian.com/money/2026/oct/28/healey-poised-to-overturn-cut-to-cash-isa-allowance-in-first-budget">Continue reading...</a>