Labour's Cash ISA raid backfires as Britain's biggest broker Hargreaves Lansdown launches a 'workaround' for savers

Hargreaves Lansdown says it has launched the cheapest money market fund in the UK, designed to deliver cash-like returns inside a Stocks and Shares ISA. From April, under-65s will be able to put only £12,000 a year into a Cash ISA, down from £20,000. That is a 40 per cent cut. Returns held inside the wrapper stay protected from tax.

Savings outside an ISA could face a new 22 per cent tax rate.

The tactic could undermine former chancellor Rachel Reeves's push to get savers into shares.

Money market funds park savers' cash in short-term bank and government debt.