Britons have piled a record amount into cash Individual Savings Accounts (ISAs) to protect their finances against post-election against changes to tax and savings rules.
The amount poured into cash the tax-free ISAs soared £1 billion year-on-year to hit £4.2bn – the biggest influx ever recorded in May.
The move comes against predictions that an incoming Labour government might cut the amount people can invest in ISAs in order to gain tax-free growth.
Currently, savers can pay £20,000 per year into an ISA and there is no limit on how much they can stash away over their lifetime. As a result, there is a growing number of so-called ISA millionaires.
However, the Resolution Foundation, a think tank which is close to Labour, has previously urged the Government to cap the amount that can be saved into an ISA at £100,000.
The Foundation argued the current rules are unfair because they mainly benefits the wealthy who have …