ISAs - cash allowance vs stocks allowance - WHY?

Following from a recent thread.
ISA allowance is ~5.3K cash based + 5.3K stock based. OR 10.6K stock based.
WHY are the governments preventing us from putting 10.6K into secure, cash based?
If we invest cash via banks, BSs, then it filters into mortgages and equities anyway - an investment in the country.
Now I'm a conspiracy theorist and believe the govts want us to lose money on our investments - as they are in cahoots with the big banks, pension cos, etc. Hence their love for annuities. Governments hate to create wealthy 30 and 40 and 50 year olds (via inheritance) who don't need to work. They would rather it went to the banks, etc.
Let's say Joe Public invests his stocks ISA allowance in a fund at Hargreaves-L. Then before he makes any money: 1. The companies needs to make money 2. The fund managers need to make money. 3. Hargreaves need a cut So not much left for Joe Public.
In the US, the Individual Retirement Account (similar to ISA) can be invested totally cash based.
Further to the pension + annuity scam, for Joe Public with only a 20% SIPP addition from government, his inheritors get taxed at 55%. Further he is not allowed to empty his SIPP (unless 20K per year of guaranteed income).
So my feeling is that unless paying high rate tax, SIPPs are a bad deal. I now only use stocks ISA for BED & ISA deals, especially if I have a capital gains winner and I can offset a loser, and put it in. Also note the "discontinued" NS&I RPI+1% tax free.
Reply to
the investor
The tax on interest lost to the government in a cash ISA is much more than the (mostly) capital gains tax lost on a stock ISA (many ISA holders being well below the annual CGT limit).
Reply to
Theo Markettos
HMRC recovers nothing from a stocks ISA in a bond or bond fund. And as you say, 5.3K/10.6K in a growth stock pick is unlikely to yield any CGT or dividends deduction to HMRC. Just seems a ridiculous restriction for those of us who want to stay cash.
Reply to
the investor

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