Rachel Reeves set to tax Stocks & Shares ISAs

Rachel Reeves is set to tax Stocks & Shares ISAs. I can't believe this is happening. These are the accounts that are meant to encourage people to invest. You don't have to put money in them at all, but they're just yet again making things more complicated. What's going on here? Well, in the last budget there was an announcement that the cash ISA limit was going to drop from £20,000 down to £12,000 starting in April 2027. The Stocks and Shares ISA, however, was going to remain pretty much the same as it always was. However, these changes gave way to a loophole where theoretically, if you just put your money inside of a Stocks and Shares ISA account without investing it, it would sit there as cash and a lot of places, for example Trading 212 that I talk about all the time, actually pay interest on that money at pretty good rates. And voila, you've effectively built yourself a cash ISA product inside of a Stocks and Shares ISA. Now the government is clearly aware of this and wants to put a 22% tax on any cash held inside of this product, therefore cutting off this loophole. And whilst I do understand this, the Stocks and Shares ISA is meant to be for investing, I just don't think this is going to have any net positive impact except for raising money for the government, whereas what it's trying to do is to encourage more people to invest. And there's a few reasons for that. Number one, cash leads to investing. Okay, yeah, let's say some people do store cash inside of their Stocks and Shares ISA, they are still more likely to put that cash into investments at some point in the future. Potentially they are dollar cost or pound cost averaging it over a period of year and now you're effectively making it more complex for them to do that. Number two, on that complexity side, we need to simplify these products. Adding tax now inside of an untaxable product to add to the cash ISA changes where the limits are changing on top of the Stocks and Shares ISA where the limits aren't changing, you're just overcomplicating things. We need to simplify things to make the big decisions in life and to encourage them to start investing. Number three, the key is education. These tax changes aren't the right move. We need more financial education. People don't invest because they are scared of losing money. They aren't going to start investing because you add tax onto the one account that incentivizes investing. And number four, what your thoughts? More changes, more complexity when it comes to Stocks and Shares ISAs. What do you think is the right way to get this country investing?