‘People are held back by fear of financial loss, a lack of confidence and limited knowledge’

‘people are held back by fear of financial loss, a lack of confidence and limited knowledge’ – Brian Byrnes, Head of Personal Finance at Moneybox reacts to ISA reforms following Rachel Reeves’ Mansion House speech.

Brian Byrnes:“The Chancellor is wise to take a measured approach towards ISA reforms. We recognise this is a complex area and welcome the opportunity for meaningful consultation.

“After many months of speculation, Cash ISA savers have been left feeling anxious about the future of one of the most popular and trusted savings accounts. In a recent Moneybox survey,  51% of Cash ISA savers were worried or confused about the potential impact that cutting the Cash ISA tax free allowance would have on their ability to build financial security. 6 in 10 believed it would unfairly penalise cautious savers and 92% were adamant that the Government should not make changes to long-standing trusted saving products without first consulting with those who use them.

“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.

“Cash ISAs are not, and never have been, a blocker to investing—they’re a gateway. 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.”