The Government will continue to look into reforming ISAs to drive higher levels of investing in the economy, according to Chancellor Rachel Reeves.

She told a summit of “top finance executives” in Leeds today - promoted as the 'Leeds Reforms' - that she will rewire the financial system to boost growth.

This will include continuing to look into ways that the Government can change the ISA and savings regime to drive more Britons towards investing rather than keeping their cash on deposit.

The news confirms that the Chancellor has, for now, dropped the idea of cutting the £20,000 Cash ISA allowance to as low as £5,000 after a wave of mostly negative feedback.

As a “first step towards ISA reforms”, the Government will allow Long Term Asset Funds to be held in Stocks & Shares ISAs from the 2026/27 tax year.

The Chancellor said this would enable, “more individuals to invest in assets that will support the UK’s future success, like innovative business and infrastructure.”

The Treasury claims that the Leeds Reforms will make the UK the number one destination for financial services businesses by 2035.

Ms Reeves is set to reveal more details of the reforms in her annual Mansion House speech this evening.

One area for reform which the Chancellor confirmed this morning is changes to the Financial Ombudsman Service.

She said: “The Financial Ombudsman Service will be returned to its original purpose as a simple, impartial dispute resolution service which quickly and effectively deals with complaints against financial services firms under today’s reforms instead of acting as a quasi-regulator, with its decisions more closely aligned to the Financial Conduct Authority’s rules.”

The Chancellor told delegates in Leeds this morning that the Leeds Reforms will cut red tape to drive growth for the UK financial services sector.

She added that a new concierge service within the Office for Investment will, “harness UK networks globally to actively court international financial services companies, creating a one-stop-shop to promote the UK” and provide tailored support.