4 mins
Rachel Reeves delivered her second Mansion House speech on Tuesday night, and despite many anticipating major reforms, the address turned out to be far less dramatic than expected.
In the weeks leading up to the speech, speculation was rife around potential changes to the Cash ISA allowance and possible pension reforms, but most of the rumours were unmet.
Read on to unpack some of the key points of the speech.
There were no major changes to ISAs despite low investment in the UK
While no sweeping ISA reforms were unveiled, Reeves did announce that from April 2026, long-term asset funds (LTAFs), which include investments in infrastructure and private equity, will be allowed within Stocks and Shares ISAs. By widening access to LTAFs, the government aims to incentivise more investments into UK private markets while offering investors the potential for higher long-term returns1.
Reeves also acknowledged that risk has long been overemphasised in financial education, which has discouraged everyday savers from investing. To shift perceptions, the government plans to launch a nationwide advertising campaign in April 2026 aimed at promoting the benefits of investing2.
Prior to the speech, reports suggested Reeves might reduce the annual Cash ISA limit to encourage more investment in Stocks and Shares ISAs. This drew condemnation from influential figures such as Martin Lewis3.
While Reeves didn’t include this reform in her speech, she made it clear that further changes to ISAs remain on the table and there will be a gradual push towards encouraging more people to invest to help boost economic growth4.
The UK has the lowest level of personal investing among the G7 countries, and a large portion of personal wealth remains in low-interest cash accounts5. As of May 2025, Cash ISAs hold roughly £417 billion, highlighting the scale of untapped potential that the government hopes to redirect into the stock market6.
Moreover, government figures suggest that over 29 million UK adults hold cash in accounts offering around 1% interest. Meanwhile, stock market returns have averaged closer to 9% over the past decade, demonstrating how the market gives you better chances of inflation-beating returns over long time horizons7.
Further announcements were also minor, though there may be more to come
As for pensions, expectations of a major announcement didn’t come to fruition. Reeves reiterated support for the Mansion House Accord, which is a voluntary agreement between 17 major pension schemes to increase allocations to private assets8.
The second phase of the government’s pension review is expected to address whether current minimum workplace contributions (8% of qualifying earnings) are enough to ensure a comfortable retirement. However, increasing employer contributions is a sensitive topic given the current economic pressures, including increased National Insurance and the rising minimum wage9.
Reeves also confirmed that the Financial Conduct Authority’s (FCA) new Targeted Support regime will go live in April 2026. This will allow financial providers to recommend suitable products to consumers with similar financial situations. It is aimed at potentially bridging the advice gap for those who currently receive no guidance10.
What this means for you and what could come next
Although Reeves’ Mansion House speech stopped short of delivering sweeping reforms, it set the tone for a longer-term pivot in how the UK approaches saving and investing.
While you may need to wait for more details of bigger changes in the coming months, it is clear the government is pushing for a cultural shift towards investing rather than just saving. Speculation has already begun as to what may or may not be included in the Autumn Budget as the first stages of this shift are put into motion.
1 15.07.2025 LTAFs permitted in Stocks & Shares ISAs from 2026 Citywire
2 16.07.2025 Mansion House speech: what it means for your money interactive investor
3 11.07.2025 Martin Lewis: 'The government has finally listened' as Cash ISA limit cut reportedly put on hold Money Saving Expert
4 16.07.2025 Mansion House speech: what it means for your money interactive investor
5 15.07.2025 Leeds Reforms to rewire financial system Gov.uk
6 14.07.2025 Fixed-rate deposits drive adult cash ISA balance growth in May Paragon
7 15.07.2025 Leeds Reforms to rewire financial system Gov.uk
8 16.07.2025 Mansion House speech: what it means for your money interactive investor
9 16.07.2025 Mansion House speech: what it means for your money interactive investor
10 16.07.2025 Mansion House speech: what it means for your money interactive investor
Succession Wealth Management Limited is authorised and regulated by the Financial Conduct Authority. Financial Services Register number 588378. Succession Wealth Management Ltd is registered in England and Wales at The Apex, Brest Road, Derriford Business Park, Derriford, Plymouth PL6 5FL: Registered Number: 07882611.
Please note: This article is for general information only and does not constitute advice. The information is aimed at retail clients only. The content was accurate at the time of writing, changes in circumstances, regulation and legislation after the time of publication may impact on the accuracy of the article. The value of your investment(s) and the income derived from it, can go down as well as up and you may not get back the full amount you invested.
FP2025-382 - Last update July 2025