Martin Lewis has interviewed Chancellor Rachel Reeves about the Budget
Martin Lewis has shared his thoughts on the Budget following a meeting with Rachel Reeves. The money-saving expert sat down with the Chancellor for an interview, which is set to be broadcast on ITV’s The Martin Lewis Money Show Live tonight (Thursday, November 27) at 7.30pm.
Ms Reeves made several key announcements, including the freezing of tax thresholds for an additional three years from 2028, a ‘mansion tax’, and the abolition of the two-child benefit cap.
While Mr Lewis did not disclose the specifics of their conversation, he did share a brief insight with his 3.2 million followers on X. He said: “On my way back from interviewing the Chancellor did about 15 mins have a 23min on air time tonight and have about 18 mins of budget explainer I want to do. Slightly worried about the maths, but some really interesting stuff.”
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In the run-up to the Budget, Mr Lewis had been outspoken about various issues, some of which were prematurely announced by the Office for Budget Responsibility. One topic that was particularly contentious was the potential reduction in the amount that could be deposited into cash ISAs, with rumours suggesting it could be slashed to as little as £4,000.
However, the limit was reduced to £12,000 – except for individuals aged 65 or older – as the Government is eager to encourage more people to invest their money, meaning the £20,000 Stocks and Shares ISA limit remains unchanged.
Mr Lewis said: “There’s logic in here based on the policy aims. While I would’ve preferred a carrot, not stick approach – this isn’t as bad as it could’ve been, £12,000 per year is still a reasonable whack for many people.
“The stated aim was not to raise revenue, but to encourage young people to invest rather than save – both for the economy, but also because on average it outperforms.
“When I met the Chancellor on this a few weeks ago, I pointed out that a blanket cut to the limit would be perverse; to cut cash ISA limits for older people to encourage younger people to invest wouldn’t work. So, the carve out for over-64s makes total sense and I’m pleased she listened.
“What needs to happen along with this is better investment education, easier access to guidance, and better investment incentives for young people. If future cash ISA annual limits are to be cut as is being suggested to ‘help encourage young people to invest’ – I’m dubious that’ll work – at the very least there should be a carve out for older savers whom aren’t the target.”
