New bank account rules for savers in UK set to be delayed until 2025

Mr Hunt made the announcement in his Budget and Spring Statement in a major update for British savers.

New ISA rules face a major delay after Chancellor Jeremy Hunt announced a brand-new British ISA last week. Mr Hunt made the announcement in his Budget and Spring Statement in a major update for British savers.

But it is set to be delayed past the general election. The policy will not be introduced in the new tax year after the Treasury concluded it would be too expensive, reports the I newspaper today, six days on from Mr Hunt making the announcement.

Experts have said that the most likely time for the UK ISA to become available is April 2025, the start of the tax year after next. Mr Hunt said in last week’s Budget: “After a consultation on its implementation, I will introduce a brand new British ISA which will allow an additional £5,000 annual investment for investments in UK equity with all the tax advantages of other ISAs.”

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Mr Hunt changed his mind after being told that doing so would reduce his “headroom”, according to the newspaper. Stephen Yiu, lead manager of Blue Whale Growth Fund, told i: “Theoretically, if a general election were to take place in the final quarter of this year, then Jeremy Hunt would probably want to launch British ISA as soon as possible in the 24/25 tax year, so the Government could claim that the policy has ‘stimulated’ the UK stockmarket.

“However, as all the platforms would first need to implement the policy – which is different to the current ISA setup – it will take some time, hence it’s more likely to launch in April 2025 instead.” Ed Monk of Fidelity International said after the Budget: “While yet to be confirmed, it would make sense to schedule the official introduction on the UK ISA for the start of the new tax year in April 2025.”

The Liberal Democrats' Treasury spokesperson, Sarah Olney, said: “It’s very disappointing but hardly surprising that even the Government’s own plans seem to go straight into the back burner. It’s clear Jeremy Hunt and Rishi Sunak have no clear plan for economic growth for this country.”