Treasury ministers have been meeting with industry stakeholders to discuss Isa reforms for the past six months.
Tom Selby, of the broker AJ Bell, said: “The rule preventing Isa savers subscribing to more than one version of each type of Isa never made much sense. Ditching this rule removes one of the key blockers to more fundamental reform and would be an extremely welcome step in the right direction.
“Coupled with reforms designed to boost the financial help available to millions of Britons, this could create the foundations of an investing revolution in the UK.
“Given most investors display a significant ‘home bias’ when choosing their investments, that revolution should, in turn, help drive more capital to British businesses.”
The Government and the Financial Conduct Authority have criticised banks this year for not passing on rate hikes to savers, but lenders have been offering better deals to savers since then, with easy-access rates at 5.2pc and one-year deals at around 6pc.
Savings rate rises follow the Bank of England’s rate of 5.25pc, which it held earlier this month.
Sources close to the discussions said that ministers are wary of implementing too many changes to the Isa regime before the next tax year starts in April.
In June, the economic secretary to the Treasury and City minister, Andrew Griffith, highlighted plans to incentivise Isa saving, as well as a goal of providing “high-quality, affordable and suitable financial advice”.
He said: “Our aim is to make [Isas] simpler and more attractive with strength and incentive to save and invest”.
A Treasury spokesman said it was receptive to ideas of how it can make Isas more attractive to encourage people to develop a savings habit and “invest in a way that works for them”.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
