Commenting on the Chancellor's decision to cut the Cash ISA allowance, Harriet Guevara, Chief Savings Officer at Nottingham Building Society, said: “The decision to slash the annual Cash ISA allowance from April 2027 is a deeply disappointing outcome for both savers and lenders. We support the Government’s aim to boost an investing culture in the UK, but restricting choice is not the way to do it.

“At a time when financial confidence is already fragile, cutting the allowance sends a difficult message to households who are trying to do the right thing.

“Millions of savers rely on Cash ISAs as a low-risk way to build financial stability. Two thirds of our Cash ISA customers have used the full £20,000 allowance so far this year. These aren’t people with excess wealth - they’re individuals and families working hard to save for the future.

“What’s more, only 38% of Cash ISA holders nationwide would consider switching to a Stocks and Shares ISA if the allowance is cut.

“Limiting Cash ISA deposits is also at odds with this Government’s own pledge to double the size of the mutuals sector, threatening to shrink mutual lending capacity, limit access to homeownership, and stall the long-term growth of building societies that reinvest in their members and local communities.

“If the Government’s intention is to encourage more investment, these changes must go hand in hand with better financial education. The UK still faces a serious gap in financial literacy, and too many people lack confidence in navigating alternatives. Without addressing that, there’s a risk of leaving savers behind.

“Our priority remains unchanged: to provide the best possible solutions to help our members save and plan for the future – no matter their age, life stage, or financial ambition. We will continue to work with government and industry to ensure savers’ voices are heard, while doing everything we can to keep delivering value, flexibility and trust for our members.”