Healey’s cash Isa reversal plans spark City row

John Healey s reported plans to reverse the cut to the cash Isa ceiling in his maiden Budget have sparked a row across the City, as banks and brokers butt heads over the end of the controversial measure introduced by his predecessor. The Chancellor will end plans to lower the annual cash Isa limit from £20,000 to £12,000, the Financial Times reported on Tuesday.  Cutting the allowance had been designed by former chancellor Rachel Reeves to funnel cash into UK companies and get more amateur investors investing in the stock market The decision is expected to be welcomed by banks, which are bracing for higher taxes in Wednesday’s Budget, and building societies who rely heavily on deposits in the Isa product to fund mortgage lending. Building societies were among the most vocal in opposing a cut to the ceiling last year, with the Building Societies Association warning first-time home buyers in particular would be affected. Writing on X, chief economist at Panmure Liberum, Si