With a Spring Statement due on 26 March, this could be an opportunity for Rachel Reeves to slash the current £20,000 tax free savings accounts, reducing the annual limit to £4,000 for example on a par with Lifetime ISAs, or even totally abolishing the tax break.

Currently tax relief on ISAs costs the Treasury nearly £7bn a year, a saving which could appeal to the cash strapped chancellor.

The big benefit of ISAs is that all savings income received within an ISA is tax free, and there is no cap on the number of accounts that can be accumulated over the years as long as savings are within the year’s limit. This has led to calls to cap the total savings limit at £100,000.

A Treasury spokesperson said: ‘We want to help people save for their future goals and build greater financial resilience across the country.