When it comes to protecting wealth, Isas - both cash and stocks and shares versions - are often the backbone used by savers to protect cash from tax.

These savings accounts let you save up to £20,000 each year tax free - and many have built up chunky pots in the last 25 years, away from the clutches of the taxman.

With Labour now at the helm, all eyes will be on newly appointed Chancellor Rachel Reeves to see what she has in store when it comes to our money.

Between January 2023 and May 2024, £73.5billion poured into cash Isas as savers made the most of the tax break with rates at a 15-year high. 

But there is a fear Isas could get caught in the crosshairs of Rachel Reeves plans, given the Government's need to raise cash without immediately raising taxes outright. 

Labour has ruled out hikes in income tax, national insurance, VAT or corporation tax.

The Isa allowance has been frozen at £20,000 since it was increased to this level in 2016 by former Chancellor George Osborne - a sizeable boost to tax-free pots at the time.

There have been calls for the Isa limit to be increased. But this did not materialise at the last Budget in March.

We asked five savings experts what Labour could have in store for Isas, whether the allowance could be cut and if Isas could be taxed - or whether savers fears are simply unjustified. 

James Blower, founder of website Savings Guru said: 'I don't expect the Isa allowance to be cut under a Labour government. 

'I think, at worst, allowances will continue to be frozen, as they have been under the Conservatives since 2016/17.

'I think, in the medium term, Labour will try and simplify the Isa system but they have bigger priorities for now and I'd expect any significant changes to come in for the 2026/27 tax year at the earliest. 

'What they may do is give a small increase to allowances – this will be a very cheap way to give something to savers without costing huge sums. 

An increase to, say, £22,000, would cost very little.

'I really don't see Labour taxing Isas – what we've seen from Sir Keir Starmer so far is that he has moved Labour to the centre ground of politics and tried to build trust to win election.

'This approach has worked for him and Labour and I don't see him wrecking this by making a move, such as taxing Isas, which would be incredibly unpopular and bring in (relatively) very little extra taxation. 

'There are easier more popular wins for Labour to increase taxation.'

Andrew Hagger, founder of website MoneyComms said: 'I'm sure Rachel Reeves will go though all current taxation rules and benefits with a fine-tooth comb in an effort to free up some spare cash and no doubt a review of the current range of Isa products and allowances will form part of that process.

'There is potential for the Isa allowance of £20,000 (in place since 2017/18 tax year) to be cut, but I'd be surprised if it happened. 

'It's more likely there would be some tinkering around the edges with the likes of the recently announced British Isa and much criticised Lifetime Isa products.

'Isas could be taxed, but again I'd be astonished if that was to happen. The Isa has almost become a permanent fixture for hoards of cash savers and equity investors in the 25 years since being introduced by Gordon Brown back in April 1999.

'With savings interest rates still relatively buoyant, increasing number of savers have exceeded their tax free personal savings allowance and become more reliant on Isas to keep their interest income away from the tax man, so for the rug to suddenly be pulled would cause much aguish and anger amongst millions of savers. 

'I can't see such a radical and unpopular move being made so early in the tenure of the new Labour government.'

Rachel Springall, finance expert at Moneyfacts Compare said: 'A new government could abolish existing tax savings allowances or indeed other money saving policies. 

'One tax-free allowance the Conservative Party introduced was the Personal Savings Allowance (PSA) in 2016, and that is something that could change. 

'If this were to be withdrawn, this could lead to a spike in savers turning to use their Isa allowance, which protects their savings interest from tax.

'Isa allowances could also be revisited in future, but savers might be hopeful for the Isa allowance to rise from £20,000, as it has not changed for years. Isas alone may not be able to address the lack of savings for consumers with low income, and Labour might think of ways to improve this situation.

'Labour introduced Isas 25 years ago and the aim was to encourage people to save or invest their money, free from tax. 

'However, today there is a possibility Labour could review how tax could work on individuals with big Isa pots, such as capping the amount which can be tax-free. 

'The money earned from tax could then be spent on other initiatives, such as the Help to Save scheme.

'Another plan for Isas that could now be dropped is the British Isa, which was designed to boost investment in the UK economy, but some criticised it would confuse savers.'

Sarah Coles, head of personal finance at Hargreaves Lansdown said: 'The Isa is the bedrock of how people save and invest in the UK, relied on by more than 22million people. 

'It provides simplicity for those starting their savings and investing journey, because they don't have to worry about tax as they start building their financial resilience.

'There is no precedent for cutting the allowance, which hasn't fallen in the 25 years they have been around, so it would be an incredibly unwelcome and surprising bolt from the blue if the government was to consider it. 

'Stability in the savings and investment space is essential if we are to encourage people to put money away today, to improve their long term security.

'Tax rules are never set in stone, but every one of those savers and investors will have put money into an Isa on the understanding it would protect them from tax, so any changes to the treatment of existing Isas would also be enormously controversial.

'There are so many other tweaks that the government could use to boost tax that it would be unlikely to rush into such an unpopular and destabilising step.'

Brian Byrnes, head of personal finance at Moneybox said: 'Just days in and speculation is already circulating on the newly elected Labour government plans for Isas.

'Labour's Financial Services Review published in January, highlighted their intention to simplify the Isa landscape with aims to 'make it as easy as possible for people to feel the benefits of saving and investing their money', and it is fully within their remit to change the Isa allowance and change the taxation around Isas.

'However, it is clear there is an urgent need for financial products that ease the path to wealth creation for the vast majority of the UK population. 

'And, there can be no doubt that Isas help achieve this, embedding positive savings behaviours and helping people build wealth throughout their lives. 

'However, in their current form, it has been said that they can benefit those on higher incomes who have been able to maximise their allowances.

'With this in mind, we would encourage our new administration to focus on delivering changes in policy that will support and empower everyday consumers to reach their financial goals and build wealth for the future with greater confidence.'