UK building societies see surge in cash ISA applications amid speculation Chancellor may cut tax-free allowance.

UK building societies report a surge in cash ISA applications as speculation grows that Chancellor Rachel Reeves may cut the annual tax-free allowance during her Mansion House speech on July 15. Industry experts warn that reducing the allowance could hike mortgage costs and limit homeownership. The government is considering ISA reforms to balance cash and equity investments, aiming to boost retail investment and better returns for savers. Over 18 million UK households use cash ISAs, and experts argue reducing the current £20,000 limit could negatively impact the economy and savers.