Last safe haven for savers under threat
Not content with allowing cash ISA rates to plummet to pitiful levels, there is word on the block that the taxman wants to encroach on this sacred, tax-free hiding place for the little money people have to save these days.
Apparently it's decided that the rise of the 'ISA millionaire' is justification enough to take a look at the tax regime and even consider a £100,000 ISA cap.
The government is in short, worried that people are going to get rich and not pay tax on it – sorry not risk paying MORE tax on their money because of course ISA savings have already been taxed once as income.
These ISA millionaires aren't the 'filthy rich' that everyone is so keen to put down, they're normal people who have had the intelligence and means to use up their, not excessive, ISA allowance each year.
A lifetime cap on ISAs would be an insult to the millions of savers out there squirrelling money away, many using ISAs for their retirement after losing all faith with the constant tinkering about pensions. Not to mention that it could also result in political suicide.
Savers have turned to ISAs because they are falling out of love with pensions, which are seen as restrictive and prone to change so by restricting ISA saving the government would most likely be doing many people out of a decent retirement.
While trying to promote the 'strivers' not the 'skivers' in its welfare cuts but simultaneously contemplating lassoing ISA savings the government is doubling back on its rhetoric of being a party of rewarding those who work hard.
In fact it is the party that wants you to work hard so it can then back you into a corner with spurious and ill-thought out attempts at capping savings, stopping you providing for yourself in retirement and finding ways to diddle those with some foresight to save out of their hard-earned cash.
I hope that the idea has solely been dreamt up by a bureaucrat who had nothing better to do that week rather than a serious policy that the Treasury is considering.
The ISA is the last bastion of savers and to start moving the goalposts would have disastrous effects for millions of households.