The amount of money that can be saved tax-free each year in a cash Isa (Individual Savings Account) will be reduced from £20,000 to £12,000 a year for the under 65s.
Ministers want people to invest more, which comes with greater risk but could help boost growth – a key objective for the government.
There are questions over whether people would naturally put their money into stocks and shares Isas as a result of the less generous tax break on cash Isas.
About a quarter of those who save money into a cash Isa currently save more than £12,000 a year.
But many of those are pensioners, and the chancellor said the over-65s will still be able to save up to £20,000 in cash.
Separately, the Help to Save scheme, which helps those on low incomes and on universal credit to put money aside, will be extended from 2028.
