THE SNP has urged Chancellor Rachel Reeves not to cut the tax free allowance on cash.

Ms Reeves is reportedly considering lowering the tax threshold on Individual Savings Accounts (ISAs) from its current £20,000, after a torrid week which saw her plans to slash £5 billion from welfare spending reined-in to £2bn in a bid to stave-off backbench rebellion.

Research by the House of Commons Library, commissioned by the SNP, found that 1.3 million adults in Scotland reported having an ISA, with accounts holding an average of £32,917.

Urging the chancellor not to “clobber” them, SNP economy spokesman Dave Doogan, said: “Rachel Reeves seems determined to make this Labour government one of the least popular in history.

“First, the Labour Party went after pensioners and disabled people with their winter fuel and disability cuts, then they went after farmers and small businesses with their tax hikes, and now they are coming after millions of hard-pressed families who are simply doing their best to save for their futures. 

“They are totally out of touch.”

The UK government was contacted for comment.