Oral Answers to Questions

Mark Garnier Excerpts

Tuesday 8th April 2025 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Mark Garnier (Wyre Forest) (Con)]

There is a great deal of speculation about the future of the cash individual savings account. As we know, it is an important savings mechanism for many savers across the country, all of whom will be dismayed at the loss of a significant cash savings opportunity. Just as importantly, cutting cash ISAs will deprive building societies of important funds for their balance sheets, reducing the amount of capital available for the residential mortgage market. This point has been raised with me by the mutual societies. Given that the loss of the cash ISA would have a profound effect on mutuals’ ability to raise debt capital, what research have the Government undertaken to establish the extent of the damage that such a measure might inflict on the residential mortgage market, which is not just important for all our constituents, but crucial for the 1.5 million new homes that the Government propose building?

[Emma Reynolds]

I work closely with the mutuals and other financial services firms, and I think the hon. Member is slightly jumping the gun, if he does not mind my saying so. We are considering options to reform ISAs, but we need to get the balance right between cash and equities. We know that many people have investments in cash ISAs who could think about investing in our capital markets, which would be a win for them through higher returns, and also for the economy. However, we absolutely understand the role that cash savings play in people having money for a rainy day.