In the Budget today Rachel Reeves announced that the amount of cash savings under-65s can put into cash ISAs will be capped at £12,000 from April 2027, with the rest of the £20,000 allowance reserved for investments.

Cash ISA deposits have climbed £2.2bn in the last year, according to the latest Bank of England Money and Credit data.

The cash ISA allowance is looking unlikely to be cut next week, despite rumours circulating that Rachel Reeves could announce the move in her Mansion House speech on Tuesday 15 July.

Chartered financial adviser The Private Office has warned the Government against cutting the Cash ISA allowance, saying that doing so will fail to drive more risk-based investing.

The government could cut the cash ISA allowance to encourage more people to put money into stocks and shares ISAs to boost investment, it suggested today.