Budget Rumours: What Could Change for Your Money?

As the next Budget approaches, the headlines are already full of speculation about what Rachel Reeves and the Treasury might announce. For savers and investors, the rumours are particularly worrying — especially around pensions and ISAs.

Here’s what’s being talked about — and what it could mean for your finances.

1. Tax-Free Cash Cancelled

One of the biggest questions is whether future retirees will lose the ability to take 25% of their pension tax-free.

• At present, this allowance gives flexibility to clear debts, help children onto the property ladder, or boost retirement income.

• Removing it would make pensions significantly less attractive, especially for higher earners.

2. Limits on ISA Investments

ISAs have long been the UK’s most popular tax shelter — but there are whispers that the annual allowance could be cut back.

• At present, you can save or invest £20,000 per year into ISAs.

• A lower limit would mean less opportunity for tax-free growth, hitting investors who use ISAs for long-term planning.

3. Cash ISA Cancelled

Some reports even suggest that Cash ISAs could be scrapped altogether, rolling everything into a single Investment ISA.

• This would simplify the system — but it risks removing a safe, accessible option for savers who prefer cash over market risk.

4. ISA and Pension Reliefs Under Pressure

Finally, the government may look again at tax relief on pensions and ISAs:

• Higher-rate taxpayers, in particular, could see their pension tax relief cut back.

• ISA allowances and structures might be overhauled, removing some of the current flexibility.

What Does This Mean for You?

At this stage, nothing is confirmed. But the rumours alone highlight the importance of having a flexible financial plan.

• If you’re approaching retirement, review your pension options now.

• If you’re a regular ISA investor, consider how potential changes could affect your long-term goals.

• And if you’re simply trying to protect your wealth, now is the time to explore alternative tax-efficient tools — from bonds to VCTs, EIS, and beyond.

✅ Our view: It’s unlikely the Chancellor will change everything in one go. But even small tweaks to pensions or ISAs can have a major impact on your financial future.

Next Steps

At Positive Advisers, we help clients stay ahead of government changes and adapt their plans quickly. If you’d like a personal review of how potential Budget announcements could affect you, we’re here to help.