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Cash Isa reforms spark debate over how best to encourage a nation of savers and investors

From the Newshound archive · first published 31 October 2026.

Cash Isa reforms spark debate over how best to encourage a nation of savers and investors

Chancellor John Healey's Autumn Budget on October 28 raised the tax rate on savings interest by four percentage points — double the two-point hike originally planned — hitting millions of ordinary savers with bills they never expected.

Basic rate taxpayers will pay 24%, higher rate 44%, and additional rate taxpayers 49% on interest above their personal allowance from April 2027.

Healey also announced a new 'Starter ISA' in the Budget speech, the seventh new ISA product announced by a chancellor since 2010, with details still to be confirmed.

MoreDaily MailWhy an Isa will become more important - especially for higher earnersFinancial TimesCash Isa changes can still foster a ‘nation of investors’iNewsHow a new 'Starter ISA' could work - and how it could make you money
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