We must also put ISA reform back on the table. While the building societies – desperate to protect their cheap source of deposits – may have won round one of the Cash ISA debate, the Chancellor must stick to her original guns, and arguably go further. Halting new Cash ISA openings and redirecting that tax relief to stocks would inject new life into equity markets and align with the government’s message on embracing risk. Add a UK equity incentive, such as income tax relief for holding British stocks in an ISA for several years, and we could meaningfully shift capital toward our most innovative, high-growth firms. It’s not just about nudging behaviour; it’s about building a culture of long-term ownership. Crucially, it could be paid for by scrapping a product that’s no longer fit for purpose.
