Around 28 per cent said they were concerned about all of the proposed tax changes
The Chancellor's ambitious plans to reshape Britain's savings landscape appear to be falling flat with the very people they were designed to influence.
Fresh polling data reveals a striking lack of enthusiasm among retail investors for the government's ISA overhaul.
According to interactive investor's latest sentiment survey, a mere seven per cent of those questioned indicated that alterations to ISA subscription limits would prompt them to put more money into UK-listed shares.
The finding poses a significant challenge for Rachel Reeves, whose reforms were explicitly crafted to channel more capital towards British businesses and markets.
Despite the government's efforts to nudge savers away from cash and into equities, investors appear largely unmoved by the proposed changes.
The reforms announced last month introduced a raft of measures set to take effect from April 2027. Chief among them is a new 22 per cent levy on interest earned from cash holdings within stocks and shares ISAs.
Previously, savers using these investment wrappers could keep money in cash alongside their holdings without facing any tax on the interest generated. That flexibility is now being curtailed.
Additionally, those under 65 will face a reduced annual allowance of just £12,000 for cash ISA contributions, down from the current £20,000 limit.
The move is intended to push people towards investing in equities rather than parking their money in savings accounts.
HMRC has also confirmed that investors will be barred from holding their entire stocks and shares ISA in money market funds, which offer cash-like returns with minimal risk.
Alongside the investment changes, the Treasury has launched a consultation on a replacement for the now-defunct Lifetime ISA.
The proposed first-time buyer account would be open to anyone aged 18 or over, scrapping the previous 40-year age cap that applied to the Lisa.
Ministers acknowledged this shift reflects the reality that people are purchasing their first homes later in life.
The new product would retain the 25 per cent government bonus, though this would only be paid when a property is actually bought rather than annually
. Crucially, the controversial 25 per cent penalty for early withdrawals would be abolished.
However, the £450,000 property price cap remains a sticking point. Rachael Griffin, tax and financial planning expert at Quilter, noted the limit has remained unchanged since 2017 despite rising house prices.
The reforms have drawn sharp criticism from industry figures who warn the changes could backfire. Rachel Vahey, AJ Bell's head of public policy, said: "Rather than minimise friction between saving and investing, these reforms reduce flexibility, entrench the divide between cash and investment accounts and introduce tax charges and complex age-related allowances."
She added the measures were "riddled with unintended consequences" and would do little to attract new investors, predicting many would simply stick with cash.
The interactive investor poll also revealed broader anxieties about the government's tax agenda.
Some 28 per cent of respondents expressed concern about all proposed tax changes, while 22 per cent specifically worried about pensions being brought into inheritance tax from April 2027.
A further 19 per cent cited frozen tax thresholds as their primary concern.
