The Chancellor today threw savers a lifeline by safeguarding the current #7,000 annual tax-free ISA allowance for five years.
Gordon Brown announced last year that he would consult on proposed reductions on ISA limits, amid a wave of opposition to the plans.
But today he gave the reassurance many were hoping for by extending the current levels until April 2010.
The news was immediately welcomed by the Investment Management Association (IMA), which said the announcement would provide stability and promote confidence in the Government's flagship savings product.
Richard Saunders, chief executive of the IMA, said: "This announcement throws investors a lifeline by safeguarding the future of ISAs for now and we hope that it will encourage savers back into the ISA market.
"All eyes can now turn to the review that has been promised for 2006.
"We hope this will not just look at ISAs in isolation, but will tackle tax incentives and savings more broadly with a view to re-invigorating the Government's long-term savings policy."