Author: richard

The beginning of the 2024-25 tax year saw an 8.5 per cent increase in the state pension – in other words, an extra £900 a year for pensioners.

That’s great news for the current crop of retirees, but what about upcoming generations?

Well, many younger adults aren’t confident that they’ll receive any state pension at all in later life.

In fact, a poll by Phoenix Group’s longevity think tank Phoenix Insights has found that half of under-50s don’t believe a state pension will exist by the time they retire.

It’s understandable that this age group isn’t feeling hugely confident about what they’ll receive in the future, given the wider debate about the state pension that’s currently rumbling on.

With people living much longer these days, providing a state pension is becoming much more expensive for the public purse, especially when you factor in the government’s commitment to the triple lock.

Add to that the fact that the state pension age is set to increase from 66 to 67 between 2026 and 2028, and could go up again before today’s younger adults even start thinking of retirement, and you can see why under-50s aren’t hopeful.

But as Patrick Thomson, Head of Research and Policy at Phoenix Insights, puts it, the state pension is “an important intergenerational social contract”.

As a result, any moves to scrap the state pension altogether would certainly be hugely controversial, especially among this age group.

Indeed, 84 per cent of adults of all ages said they believe that providing a state pension is an essential role of the government.

In addition, 87 per cent said they think the state pension is there to make sure every single person has a minimum level of income when they retire.

“The state pension matters to all of us,” Mr Thomson continued.

“It is the biggest single part of the social security system and has been the foundation for many people’s retirement income for over 75 years.”

But while the level of support for the state pension came across loud and clear, the survey also highlighted some significant gaps in people’s knowledge.

For example, more than a fifth of over-55s admitted they didn’t know their state pension age – and many of those polled said they didn’t know what the triple lock is.

That’s a real concern, as many of these people will be hoping they’re in the last decade of their working lives and wanting to enjoy a retirement free of financial worries.

Another notable finding was that nearly one in five adults across all age groups believe they could live on the state pension alone in retirement.

The full rate of the new state pension is £221.20 a week, and that’s clearly not enough to cover all your living costs and leave you with enough left over to enjoy hobbies, pastimes and luxuries.

That’s why you should make sure you have plans in place to supplement the state pension, such as workplace pensions, private pensions and other investments, and ensure that these make up the bulk of your income.

Then you can set yourself up to enjoy a much more comfortable lifestyle during your retirement, and ensure you have the means to live the kind of life that you want and deserve.

If you have any questions about saving for retirement and making the most of your pensions, get in touch with our specialist team of financial planners.

We’re here to help and will be happy to speak with you, so get in touch and take charge of your retirement planning today.

As you move through your working life, it’s easy to get a rosy picture of retirement and dream of the day when you finally step away from the office.

But how do you work out when that day should actually be?

Well, there’s no simple answer to this question, as there are so many factors that are unique to you personally.

However, there are several other questions you can ask yourself beforehand as you decide whether or not to make the leap into retirement…

Can I afford to retire?
Ultimately, your ability to enjoy a happy, fulfilling and secure retirement and the lifestyle you desire will be underpinned by your financial situation.

So take a holistic look at your finances so you can work out how much income you’re likely to receive in retirement. This includes your:

Private pensions
Investment income
State and workplace pensions
Cash savings
Social security benefits
Other assets, such as property
It’s also really important to look at your existing debts, as this will eat into your income unless you pay them off as quickly as possible.

What do you want from retirement?
There’s no one-size-fits-all model of retirement. Some may dream of a quiet life, staying at home and pottering around the garden.

Others, meanwhile, might see it as their opportunity to be more adventurous, travel the world, go to festivals and indulge in their hobbies and passions.

Or perhaps you’re someone who wants to spend time looking after your grandchildren and making the most of precious family time.

By asking yourself what you want from retirement, you can then work out what your chosen lifestyle is likely to cost you, and when you’ll be in a financial position to fulfil this goal.

Are you ready for the change?
Retiring is one of the biggest life decisions you’ll ever make. So it’s important to consider the practical and emotional impact of hanging up your professional hat.

You should ask yourself probing questions such as:

How will you fill your days?
Do you have hobbies and interests to keep you physically and mentally engaged?
Do you have friends and family around you, so you stay socially connected?
Are you disciplined enough to structure your days without work?
Is your job a key facet of your identity, and if so, what will you be without it?
Of course, you might have been counting the days to retirement for many years and have no qualms whatsoever about stopping work.

But if you’re someone who thrives in the workplace and has struggled to achieve a good work-life balance in the past, adjusting to retirement can be difficult.

Are you in good health?
Retirement should be a time when you have the freedom to enjoy days out, holidays, family time and activities, so you don’t want to be held back by health issues.

You should therefore do all you can to increase the chances of enjoying good health in later life, such as maintaining an active lifestyle, managing existing conditions and not neglecting your mental and emotional wellbeing.

Investing in your health in the present is an investment in your future, and could put you in a position where you’re able to truly enjoy your retirement years.

Speak to your partner or spouse
If you’re unsure about when to retire, talk about it with your other half. Openly discussing your hopes and expectations ensures you’re both on the same page and working towards the same goals.

Seek financial advice
Getting to grips with every aspect of your finances and working out your likely income in retirement can be complex and overwhelming in equal measure.

However, a specialist financial adviser can take away this burden, examining your finances in the round to create a personalised retirement plan.

They’ll look at everything from your various sources of income to your existing debts, and guide you on what tax strategies can help you maximise your retirement income.

A financial adviser can also help you adjust your plan as your circumstances change over time, so you can be confident that you’re still on track to achieve your financial and lifestyle goals.

Retirement is something many of us dream of, so carefully considering your finances, health and lifestyle ambitions straight away can set you up nicely for the future you want and deserve.

Jeremy Hunt has delivered his Spring Budget, his fourth fiscal event as Chancellor, and the final Budget before a general election.

The timing wasn’t ideal for Mr Hunt, as the economy recently slipped into recession and the Conservatives remain well behind in the polls.

On the one hand, he would have to be financially prudent and responsible, and on the other, he was under huge pressure to deliver giveaways to the electorate before they cast their votes later this year.

Let’s take a closer look at the context in which the Budget is taking place…

The political background

Mr Hunt’s Budget came at a time when the government has been consistently polling behind Labour.

According to a recent poll carried out by Ipsos for the Standard, support for the Conservatives is now at a record low of just 20%, down from 27% in January. This puts them 27 points behind Labour and is the worst result for the Conservatives since 1978.

Meanwhile, a separate poll by Find Out Now and Electoral Calculus has predicted that the Conservatives could be left with just 80 MPs after the election, and that Labour will secure a majority of 254.

The Conservatives have also been hit with a string of by-election defeats. Just last month, Labour overturned a majority of more than 18,000 to win Wellingborough from the Tories, achieving a swing of 28.5% – its second largest swing from the Conservatives ever.

On the same day, Labour overturned a majority of more than 11,000 in the Kingswood by-election. These were the ninth and tenth by-election defeats for the government during the current parliament, and the most suffered by any government in a single parliament since the 1960s.

As the general election moves ever-closer, the Conservatives are also facing a possible electoral threat from Reform UK, formerly the Brexit Party. According to a recent YouGov poll, 33% of those who voted Tory in 2019 would do so again, but 20% would switch their vote to Reform.

Another problem for Prime Minister Rishi Sunak is that four of the five priorities he unveiled at the beginning of 2023 have not been achieved.

In January last year, Mr Sunak pledged to halve inflation, grow the economy, reduce national debt, cut NHS waiting lists and stop migrants from crossing the English Channel on dinghies. At the time of writing, only the pledge to halve inflation has been delivered.

The Prime Minister has so far been tight-lipped on exactly when the general election will take place, saying only that his “working assumption” is that voters will go to the polls in the second half of the year.

But speculation that the election could be called for May continues to swirl, and if that’s the case, the Spring Budget could be the government’s final chance to pitch to voters before the campaign begins in earnest.
The economic background

The UK slipped into recession towards the end of 2023, as the economy contracted by 0.1% between July and September, and then by 0.3% between October and December.

Although the UK economy did grow by 0.1% throughout the year as a whole, the annual growth figure for 2023 was still the weakest since 2009 (excluding 2020, when the pandemic put the brakes on economic activity).

As we discussed earlier, inflation has come down significantly from its peak of 11.1% in October 2022, when it was at a 41-year high. However, the rate of inflation stayed on hold in January 2024, remaining unchanged from the previous month at 4%. That’s still twice the Bank of England’s target of 2%.

The Bank’s Monetary Policy Committee had been hiking interest rates since December 2021 in an effort to tackle inflation. However, the Bank’s Monetary Policy Committee has recently kept rates on hold at 5.25%, which has led to speculation that they could be lowered in the coming months.

Despite this less than ideal economic backdrop, the Chancellor has faced strong political pressure to cut taxes, as the tax burden is currently at a 70-year high. A cut in National Insurance, rather than income tax, was heavily rumoured ahead of the Budget, while there was also speculation that Mr Hunt could abolish non-dom tax status.

This would be a politically risky move for the government, as Labour has long called for non-dom tax status to be scrapped in order to generate funds for public services. The government has also consistently rejected this idea, arguing that the existing non-dom arrangements helped to make the UK an attractive place for wealthy people to live and work.

Mr Hunt approached the Budget in something of a bind, with limited headroom to make big, vote-winning, headline grabbing giveaways, yet facing overwhelming political pressure from many on his own side to deliver exactly that.

Clearly, there was lots at stake for the government as the Chancellor rose to speak, so let’s take a look at what he announced…

The speech

Opening remarks
Mr Hunt began his Spring Statement by announcing that £1m would be invested in creating a memorial to Muslims who died in the two world wars.

Amid noisy heckling from the opposition benches, he said his Budget was designed to create more investment, more jobs, better public services and lower taxes.

The Chancellor’s statement was accompanied by forecasts from the Office for Budget Responsibility (OBR), which predicts that the economy will grow by 0.8% in 2024 and 1.9% in 2025. This will be followed by growth of 2% in 2026, 1.8% in 2027 and 1.7% in 2028.

Inflation, meanwhile, is set to fall below the Bank of England’s 2% target in “just a few months time”.
Personal taxation and allowances

What Employee National Insurance to be cut from 10% to 8%
When April 6th 2024
Comment Class 1 National Insurance paid by employees will fall by 2p in the pound. This follows another 2p cut to National Insurance in last year’s Autumn statement.

According to Mr Hunt, this means the average worker earning £35,400 a year will be more than £900 better off this year.

What Self-Employed National Insurance to be cut from 8% to 6%
When April 6th 2024
Comment Following a cut from 9% to 8% in the Autumn Statement, National Insurance for the self-employed is being cut again to 6%.

The government believes this will make the average worker earning £28,000 a year £650 better off compared with last year.

What Non-dom tax regime to be scrapped and reformed
When April 6th 2025
Comment The current tax system for non-doms will be abolished and replaced with a “modern, simpler and fairer residency-based system”.

Under the new system, new arrivals to the UK will not have to pay any tax on foreign income and gains for their first four years of UK residency. After four years, people who continue living in the UK will pay the same tax as other UK residents.

The government believes this will be more generous than the existing regime and “one of the most attractive offers in Europe”.

This particular move will be seen by many as highly political, as Labour had planned to use the money raised by scrapping non-dom tax loopholes to fund spending commitments such as extra GP appointments and breakfast clubs in primary schools if it wins the next general election.

Transitional arrangements will be put in place for those who are currently benefiting from the current system, in recognition of the contribution many of these people make to the UK economy.

That will include a two-year period in which people will be encouraged to bring wealth earned abroad to the UK where it can be spent and invested domestically.

What Higher rate of Capital Gains Tax on property to be cut from 28% to 24%
When April 6th 2024
Comment The higher rate of Capital Gains Tax on property is to be cut in an effort to incentivise landlords and second home-owners to sell their properties.

It is hoped this will make more homes available to buyers, including those who are seeking to get on the property ladder for the first time.

Private Residence Relief remains unchanged, which means Capital Gains Tax will not be paid on the “vast majority” of residential property disposals.

What Furnished Holiday Lettings (FHL) tax regime to be abolished
When April 6th 2024
Comment Tax breaks which make it more profitable for second home owners to let properties out to holidaymakers rather than long-term tenants are to be scrapped.

This means that short-term and long-term lets will be treated in exactly the same way for tax purposes. In addition, people with FHL and non-FHL properties will not have to calculate and report income separately.

What Multiple Dwellings Relief to be scrapped
When June 1st 2024
Comment Stamp duty relief for people buying multiple properties in one transaction is to be abolished.

This comes after an external evaluation concluded there was “no strong evidence” it was “meeting its original objectives of supporting investment in the private rented sector”.

What Air Passenger Duty for business class flights to go up
When April 1st 2025
Comment Rates of Air Passenger Duty (APD) on non-economy passengers are to be adjusted on a one-off basis to reflect the rate of inflation.

The government believes this will help to maintain the value of APD in real terms.

Rates will remain unchanged for passengers travelling in economy on domestic or short-haul flights.

What High income child benefit charge (HICBC) threshold to be increased from £50,000 to £60,000
When April 6th 2024
Comment The HICBC threshold is being raised to £60,000, while the top of the taper at which it is withdrawn is being increased to £80,000.

This means that nobody earning less than £60,000 will pay the charge. Government estimates also suggest that the move will take 170,000 families out of paying HICBC completely.

Furthermore, the higher taper and threshold means that nearly half a million families with children will save around £1,300 on average next year.

Pensions and savings

What A £5,000 “British ISA” tax allowance to be consulted on
When No date confirmed, six-month consultation period
Comment The newly-announced British ISA will allow an additional £5,000 annual investment for investments in UK equity, and offer all the tax advantages of other ISAs. This will be on top of existing ISA allowances.

The government hopes this new ISA will enable savers in the UK to benefit from the growth of the “most promising” domestic businesses and support them with the capital to help them expand.

No date on when the British ISA will be introduced has been confirmed as yet and the details are to go out to consultation for six months.

As we note in our conclusions below, there are a number of practical problems which need to be addressed if this extra allowance is to come into force.

What New British Savings Bonds offering savers a guaranteed rate for three years
When April 2024
Comment National Savings & Investments (NS&I) is to launch a product that will offer consumers a guaranteed interest rate, fixed for three years.

The rate will be announced by NS&I in April.

What Pensions Lifetime Provider commitment
When Ongoing
Comment The government has reaffirmed its commitment to exploring a lifetime provider model for Defined Contribution (DC) pension schemes in the long-term.

Continued analysis and engagement will be carried out to make sure this leads to better outcomes for pension savers.

What Pensions triple lock to be maintained
When Ongoing
Comment The triple lock is a mechanism designed to make sure the state pension doesn’t lose value, so it will go up by whichever is highest of the following measures:

● Average earnings
● The rate of inflation (as per the Consumer Price Index)
● 2.5%

Business investment and taxation

What VAT threshold raised to £90,000
When April 1st 2024
CommentThe amount businesses can earn before registering to pay VAT is to be raised from £85,000 to £90,000.

The government believes this will take around 28,000 small businesses out of paying VAT completely and encourage many more to “invest and grow”.

Meanwhile, the deregistration threshold is being raised from £83,000 to £88,000.

What Full expensing tax break for businesses to be extended to leased assets
When No date confirmed
Comment During last year’s Autumn Statement, the government made full expensing permanent, which means that for every £1m a company invests in qualifying machinery and equipment, it gets £250,000 off their tax bill in the same year.

The government has now said it wants to extend full expensing to assets for leasing “when fiscal conditions allow”. Draft legislation on this will be published soon.

What Windfall tax on the profits of energy firms extended
When From March 2028 to March 2029
Comment The Energy Profits Levy sunset clause is being extended for another year, which will raise £1.5bn.

The government believes energy prices are likely to remain “abnormally high” until 2028-29 at the earliest, which means windfall profits in the sector will persist as well.

However, legislation will be introduced to abolish the levy if market prices fall to their historic norm sooner than expected for “a sustained period of time”.

What Recovery Loan Scheme extended
When Until the end of March 2026
Comment £200m is to be invested in extending the Recovery Loan Scheme as it transitions to the Growth Guarantee Scheme. This will enable 11,000 small to medium-sized enterprises (SMEs) to access the finance they need.

What Tax relief for orchestras, museums, galleries and theatres
When Immediately
Comment Tax relief offered to orchestras, museums, galleries and theatres during the Covid-19 pandemic is being made permanent.

Touring and orchestral productions will benefit from 45% tax relief, while non-touring productions will get tax relief of 40%.

Mr Hunt said the move recognises “their vital importance to our national life”.
Other announcements

What Fuel duty frozen for another year
When Until March 2025
Comment The 5p cut on fuel duty will be maintained and kept on hold for another 12 months.

The government believes this will save the average car driver £50 next year.

What Alcohol duty freeze extended
When From August 1st 2024 until February 1st 2025
Comment The freeze in duty, originally set to end in August, has been extended to February next year.

What Excise duty on vaping products
When From October 2026
Comment A duty on vapes will be introduced in an effort to “protect young people and children from the harm of vaping”.

The Treasury believes this will raise £445m in 2028-29.

What A one-off increase in tobacco duty
When From October 2026
Comment The government is introducing a one-off increase in tobacco duty as it recognises that vapes can “play a positive role in helping people quit smoking”.

This increase will therefore “maintain the financial incentive to choose vaping over smoking” and raise £170m in 2028-29.

What £90 admin fee to obtain a Debt Relief Order abolished
When April 6th 2024
Comment The government is making it easier to access a Debt Relief Order by removing the £90 administration fee, which it believes will help households who are struggling with debts.

Conclusion and reactions

Our thoughts

With little room for the Chancellor to manoeuvre, and the main announcement being leaked beforehand, there was little in this Budget for investors to be excited or concerned about.

Branding existing products as ‘British’ is already being perceived by much of the financial services sector as a political gimmick and unlikely to add significant benefit to the vast majority of investors. That said, we should always look to use any allowances available.

British ISA

Whilst greater allowances are always welcomed, the proposals have some serious practical problems which mean they may never see the light of day.

For example, it is unclear how investing in a ‘UK asset’ will result in more money coming into UK businesses. An investment trust is a UK company but will typically invest much of its money overseas. Purchasing a UK-listed stock like Antofagasta Plc might qualify, but it invests all of its money in Chilean copper mines.

Unlike the UK infrastructure funds proposed in the Autumn Statement, which can be used as long-term investments by pension funds, ISA investments need to be highly liquid as the money can be withdrawn at any time. This poses some challenges when trying to divert funds to the UK, and there are relatively few people in the UK who are likely to use the £5,000 allowance even if it can be achieved.

For our own clients, we have an investment discipline which prioritises diversification and asset allocation over individual fund selection when investing our clients’ money. This involves diversifying not only the assets held – e.g. equities and bonds – but also the regions you are invested in – UK, US, Europe, Asia etc. Should this allowance become available, we would look into the best way to use it, which might mean reviewing and reallocating where your current funds are held rather than purchasing more UK funds. For now, we will keep an eye on the consultation and how it progresses.

Anyone without an adviser faces yet another choice on top of the many types of ISAs already available and more complexity is unlikely to encourage more people to invest.

British Saving Bond

All NS&I bonds are ‘British’ as they are all issued by the UK government, so there is nothing to report on this yet until we find out what the rate is.

The only other NS&I fixed term bond available is the Green Savings Bond, which the government uses to invest in green projects, and that has raised little interest for consumers due to its poor interest rate.

This new bond released in April is also a three-year fixed rate and money will be ‘invested back into supporting the UK’, which is essentially what all UK bonds do, so the rate will most likely be the differentiator.

Wider reaction to the speech
There was no shortage of anticipation surrounding this Budget, especially as it came in a general election year. But whether the speech lived up to its billing is open to debate.

After all, much of the speech had either been trailed or heavily rumoured in advance, and there was no rabbit out of the hat moment guaranteed to grab the next day’s headlines.

The lack of fireworks was reflected in fairly muted rather than excitable newspaper headlines. The Financial Times, for example, simply went with “Hunt leaves door open to more tax cuts”, while the Mail asked “Will it be enough to see off Labour?”.

The Daily Express, however, was very happy with the statement, exclaiming “Britain ready for take off!”. By contrast, the Mirror went in strong with “We deserve better”.

Labour leader Sir Keir Starmer responded to the Budget by describing it as “the last desperate act of a party that has failed”, and branded Jeremy Hunt and Rishi Sunak “the Chuckle Brothers of decline”.

Sir Keir highlighted the scrapping of the non-dom tax regime as an “obvious example of a government that is totally bereft of ideas”, as it has chosen to “finally accept Labour’s argument” after “years of resistance”.

The Institute for Fiscal Studies (IFS) gave the Budget more of a mixed response, praising the cut to National Insurance and the announcement on non-dom taxes, but stating that “the big picture on tax remains much the same”.

IFS Director Paul Johnson said: “Come the election, tax revenues will be 3.9% of national income, or around £100bn, higher than at the time of the last election. This remains a parliament of record tax rises.

“While the OBR got a little more positive in its projections, the picture on living standards also remains dismal. On average, households will be worse off at the time of the next election than they were at the last, following nugatory real earnings growth.”

The Resolution Foundation, meanwhile, pointed to the decision to once again cut National Insurance as the standout moment of the Budget.

Torsten Bell, Chief Executive of the think tank, said: “The biggest choice Jeremy Hunt made was to cut taxes for younger workers, while allowing taxes to rise for eight million pensioners. This is a staggering reversal of the approach taken by Conservative governments since 2010. It is undoubtedly good economics, even if the politics are a harder sell.”

Nevertheless, he concurred with the IFS’s view on the tax burden, describing the UK as a country “where taxes are heading up not down”.

“The big picture has not changed at all with this Budget,” Mr Bell stated.

Right-leaning think tank the Institute of Economic Affairs was also underwhelmed, stating that the Budget “hasn’t really moved us any closer to where we need to be”.

“There’s no getting away from the fact that raising living standards in the long run depends on generating faster economic growth,” said Executive Director Tom Clougherty.

“That means prioritising tax reforms with genuine pro-growth impact, fixing our broken planning system, and accepting that we need to couple spending restraint with major reforms to public services.”

The Budget also garnered a mixed response from the Confederation of British Industry (CBI), which commended the Chancellor for keeping “his gaze fixed on the structural challenges facing the UK economy” and taking steps to incentivise work.

Rain Newton-Smith, Chief Executive of the CBI, particularly welcomed the move to introduce legislation that extends full capital expensing to leased and rented assets, as it would “offer greater momentum to efforts to increase business investment”.

However, she said extending the Energy Profits Levy “weakens the competitiveness of the sector”, and that businesses “will be looking for more emphasis on delivery by developing a Net Zero Investment Plan to crowd in the private finance needed to deliver the clean energy transition.”

The Federation of Small Businesses singled out the increase in the VAT threshold and the cut to self-employed National Insurance contributions for praise. Nevertheless, Policy Chair Tina McKenzie said there was little to help “ease the tough decisions” business owners are having to make “to keep their businesses going”, as many are facing “serious challenges” such as “rapid hikes in labour and input costs”.

“There’s still a real gap when it comes to the crunch small firms are facing – and the growth, jobs and economic security small businesses provide is not something the country can afford to risk,” she added.

UK Finance, meanwhile, commended the announcement on the Growth Guarantee Scheme, as it would ensure SMEs can access the funding they need to invest and grow, along with Mr Hunt’s plans for a new British ISA.

“[This] will enhance investment in UK companies and increase the levels of retail investment,” said Chief Executive David Postings. “We welcome his focus on promoting ownership of UK stocks and helping more people save for the long term.”

The Investment Association added that the government’s “objectives to improve the quality of DC pensions and to boost the flow of capital to British businesses, whether publicly listed or privately owned” will put investment “back at the heart of the agenda”.

“Risk capital is the lifeblood of economic growth, and attracting a new wave of both domestic and international investors will help reinvigorate the UK investment environment and provide investment to innovative, high-growth companies,” said Chief Executive Chris Cummings.

Conclusion

With the memory of the 2022 Mini-Budget and its aftermath still fresh in the memory, it was perhaps not a surprise that the Chancellor opted for a “safety first” approach.

But with a general election just around the corner, many observers might reasonably have expected more crowd-pleasers, or for the big announcements to be unveiled with a flourish at the despatch box, rather than in the newspapers.

Does this point to a late election and one more fiscal event before voters go to the polls?

Or is the government hoping this more tentative approach reestablishes its credentials as the party of fiscal and economic competence, with a view to calling an election for the spring?

Only the Prime Minister and his team can possibly answer this question at the moment.

But whatever happens, you can be confident that we will be at your side throughout, helping you work towards your financial goals.

Jeremy Hunt, the Chancellor of the Exchequer, has delivered his Spring Budget, and we wanted to keep you informed about what has just been announced.

We’ll provide more detailed insight over the coming days, but for now, here are the main headlines.

Taxes

● Employee National Insurance to be cut from 10% to 8% from April.

● Self-Employed National Insurance to be cut from 8% to 6% from April.

● Non-dom tax regime to be scrapped and reformed, with new rules being introduced in April 2025. Under the new system, new UK arrivals will not have to pay any tax on foreign income and gains for the first four years of UK residency.

● Higher rate of Capital Gains Tax on property to be cut from 28% to 24%.

● Tax breaks which make it more profitable for second home owners to let properties out to holidaymakers rather than long-term tenants to be scrapped.

● Stamp duty relief for people buying multiple properties in one transaction to be scrapped.

● Air passenger duty for business class flights to go up.

● High income child benefit charge threshold to be increased from £50,000 to £60,000.

Pensions and savings

● A £5,000 “British ISA” tax allowance to be introduced, enabling the public to invest in UK-listed businesses.

● New British Savings Bonds offering savers a guaranteed rate for 3 years.

● Commitment to exploring a lifetime provider model for Defined Contribution (DC) pension schemes in the long-term.

● Pensions triple lock to be maintained.

Living costs

● Fuel duty frozen for another year.

● Alcohol duty freeze extended until February 2025.

● Excise duty on vaping products from October 2026.

● A one-off increase in tobacco duty to maintain the “financial incentive” to pick vaping over smoking.

● £90 fee to obtain a debt relief order abolished.

Businesses

● Amount businesses can earn before registering to pay VAT to be raised from £85,000 to £90,000.

● Full expensing tax break for businesses to be extended to leased assets when economic conditions allow.

● Windfall tax on the profits of energy firms extended until 2029.

Economy

● The OBR expects inflation to fall below the Bank of England’s 2% target in “just a few months time”.

● UK economy predicted to grow by 0.8% in 2024 and 1.9% in 2025. This will be followed by growth of 2% in 2026, 1.8% in 2027 and 1.7% in 2028.

Over the coming days, we’ll be taking a close look at what the Chancellor has announced and what it means for you.

We’ll share our conclusions with you in a detailed report, so keep an eye on your inbox.

Your business doesn’t stand still and many changes will take place around you every single day.

Perhaps there are new rules and regulations being introduced that directly affect your business.

Or maybe there are shifts in the wider marketplace and economic landscape, which in turn change the needs, requirements and demands of your customers.

There may be internal changes happening too, such as a merger or takeover, key members of your team leaving or joining, or the launch of a new product or service that takes your company into new territory.

You’re likely to already have a business continuity plan in place, so you’re prepared if you’re hit with unexpected disruption or disaster, such as a fire on your premises,

But when was the last time you looked at it?

The last thing you want is to discover that when you actually need to put it into practice, it’s out of date and useless in your current situation.

So as your business develops and the landscape around you evolves, your business continuity plan needs to be updated accordingly, so you can be sure it’s fit for purpose should it ever be required.

Schedule times throughout the year, perhaps every three to six months, where you can ask yourself key questions and make changes to your business continuity plan if necessary.

For instance:

Does your plan name the right people, and take into account recent departures and hires?
Does each named person have clearly defined roles and responsibilities – and are they the best people for these particular jobs?
Has each named person been given relevant training? If so, was it a long time ago or in the last year?
Is your contact list for staff, clients and suppliers up to date?
Do your current tech recovery needs match what’s laid out in your plan?
Once your business continuity plan has been updated, you can then schedule a time to test it, so you can see how it works in practice. This gives you the opportunity to identify strengths and weaknesses, and make further refinements to your plan if they’re needed.

It’s easy to sit back and think you’re ready for anything once you have drawn up a business continuity plan.

But it’s wrong to view it as something that’s set in stone.

Instead, it should be treated as a live document that evolves in line with changing business needs, customer demands and market conditions.

By reviewing it regularly and making sure it reflects your current needs and circumstances, you can be confident it will work for you should it ever need to be implemented, and that you’re in a strong position to keep trading even during a period of intense disruption.

It’s easy to rack up all sorts of debts throughout life, from credit card balances and outstanding bills to personal and business loans.

While many will be manageable and barely register on your radar, they can collectively add up to quite a significant burden, and become a problem that slows down your progress to achieving true financial freedom.

So what practical steps can you take to reduce the burden of debt?

Assess your debt situation
Start by writing a list of all outstanding debts, how much you owe, the minimum monthly payments and the interest rates attached to each one.

If you’re able to take a look at the big picture, you’ll have more clarity over what needs to be done, the scale of the problem and how quickly you need to pay everything off.

Prioritise high-interest debts
High-interest debts will prove more costly over time, so it’s well worth paying these off first. Not only does this help you avoid huge interest accumulation, it also wipes out the most significant debts first and means you can focus your efforts elsewhere.

Create a realistic budget
You can only put together a debt repayment strategy that works if you have a clear idea of how much money you’ve got coming in and what you’re paying out on various day-to-day expenses.

Once you understand your starting position, you’ll be able to allocate a portion of your budget specifically for paying down debts, without compromising on other aspects of your life.

Speak with creditors
If you’re struggling to repay any particular debts, it could be well worth reaching out to creditors directly and negotiating with them. Letting them know you’re finding it hard to repay the money is far preferable to ignoring the issue and allowing it to get worse.

Simply being proactive and saying something can also assure creditors you’re acting in good faith and encourage them to offer more flexible, manageable payment terms.

Track your progress to stay motivated
Reducing your debt burden takes time, so it can be easy to lose motivation if you can’t see any measurable results.

It’s therefore well worth tracking your progress and celebrating any wins, both large and small, that may occur along the way.

Not only does it help you keep an eye on the outcome you’re working for, but it can give you the extra nudge you need to stick to the plan and hold yourself accountable.

Reduce your outgoings
Examine your spending habits and regular expenses to see where any savings could be made. Even if you can only save a small amount of money, reinvesting it into repaying debts could make a big difference to you in the longer term.

Get professional advice
If you don’t know where to start or want to put together a more detailed debt repayment plan, it could be well worth speaking to a professional, regulated financial adviser.

Consulting with an expert in this field can give you the confidence and peace of mind you need – and you can be sure the advice you’re given reflects your wider financial circumstances and goals.

If you want to speak with a specialist about reducing your debt burden, please don’t hesitate to get in touch and we’ll be happy to speak with you.

The beginning of a new year is always a good time to take stock and think about what you want to get out of life.

With that in mind, it’s a perfect opportunity to look again at your financial goals, and get into good habits that help you work towards these outcomes.

So what realistic steps can you take to maximise your financial wellbeing and make sure you’re on course to achieve your long-term objectives?

Commit to regular financial check-ups
Your financial situation and wider circumstances will evolve over time, so make sure you assess your net worth, cash flow and overall financial stability every few months.

A professional, regulated financial adviser will be well-placed to help you review your financial health, and can help you revise your financial strategy in a way that aligns with your current situation, priorities and ambitions.

Refine your investment portfolio
Take a fresh look at your existing holdings and consider whether they align with your current goals and risk tolerance.

It may be that now is a good time to look at new opportunities or diversify into different asset classes, sectors and markets.

Assess your retirement plans
You want to do more in retirement than simply make ends meet, so assess your retirement plans to make sure you’re on course to live the kind of lifestyle you want in the future.

For example, could you afford to pay a bit more into your pension scheme? Are you taking full advantage of the tax benefits that come with pension saving?

Taking the right steps to maximise your pension saving now could pay off handsomely in later life, as you’ll benefit from greater compound growth.

Again, a financial planner will be able to help you and suggest strategies that could set you up for a happy, fulfilling and financially secure retirement.

Review outstanding debts
Take a look at any existing debts so you can manage them in the most efficient way possible. For instance, you could prioritise paying down high-interest debts, so you ultimately end up paying less in the long run.

At the same time, you could try to prevent getting into unnecessary debt where possible, perhaps by committing to using your credit card more responsibly.

Review and update your estate plan
As your financial situation and overall circumstances change over time, it’s important to update your estate plan accordingly, so it reflects your current situation, assets and wishes for the future.

Don’t overlook your mental health
Money is one of the biggest causes of stress and anxiety, so getting on top of your finances is one of the best ways to protect your mental health.

If you know that your financial strategy accurately reflects your current circumstances and that you’re on course to achieve your financial goals, you’ll be better able to focus on what makes you happy and enjoy your life.

Our financial planners are here to help you get into good habits and advise you on how you can maximise your wealth in 2024.

Please don’t hesitate to get in touch with our friendly team of specialists and we’ll be happy to speak with you.

Financial difficulties are one of the biggest causes of poor mental health in the UK.

In fact, figures from the Money and Mental Health Policy Institute show that nearly three-quarters of Brits have felt anxious in the last two weeks, with many citing money issues as the cause of their anxiety.

But a problem shared is a problem halved, so if you’re struggling under the weight of financial burdens, it’s well worth seeking professional advice.

An expert financial planner can do much more than advise you on balancing budgets and investing wisely.

They can also give you a much-needed sense of security and reassurance, so you can live your life on your terms and take control of your future.

How can a financial planner help you
Making the complex simple

Countless elements of financial planning, from setting household budgets to building savings strategies and repaying debts, can be hugely overwhelming.

After all, the terminology and technicalities can be hard to get your head around, and of course, the cost of getting it wrong puts you under added pressure.

But a financial planner will have the expertise and knowledge that you may lack, and be able to advise you from a much more informed perspective.

That can massively relieve the burden you’re experiencing, both now and in the longer term.

Giving you confidence

If you have both a better understanding of your financial situation and an expert helping you put together a plan for the future, you’ll gain a new sense of confidence over your affairs.

As a result, you can feel in control of your own destiny and empowered to make decisions.

Certainty for the future

Financial anxiety often stems from not knowing whether we’ll be able to make ends meet in later life.

Working with a financial planner helps you address this problem, as they can help you build a strategy that prepares you for retirement, makes sure you’re ready for emergencies, and puts you on course to achieve your long-term goals.

An objective viewpoint

Emotions can run high when you’re making financial decisions, particularly if your dreams and ambitions are at stake.

This can often mean you’re not in the best place mentally to make big financial decisions, and you could be swayed by your feelings into making unwise choices.

However, a financial planner doesn’t have the same emotional investment and can look at your situation in an impartial, objective way.

Knowing you have that sense of clarity available can offer valuable reassurance at a time when you’re making decisions that define your future.

If you have any questions about getting your finances in order, please get in touch with our friendly team of specialists.

You’ll find that having access to the professional advice you want and need will make a big difference to every aspect of your life.

Any business owner will know that they can face sudden and unexpected challenges, and be forced to grapple with factors that are well beyond their control.

Perhaps your premises are damaged in a fire or through crime, or maybe there’s a wider slump in the economy or your industry that hits trading.

As a business owner, it’s your responsibility to be ready for the unexpected, so you can withstand any disruption and come back in a strong position.

You can do that by creating a financial emergency plan. Here’s how…

Look at your current financial situation
You can start building your financial emergency plan by gathering relevant documents such as balance sheets, cash flow reports and income statements.

You should also take a look at any outstanding invoices you may have, your existing debt obligations and any other areas where you could be financially vulnerable.

Identify potential risks
Think about what factors could possibly derail the smooth running of your business, both internal and external.

Internal risks could include losing key clients and cash flow problems, for example, while external risks may include economic downturns and natural disasters.

Once you’ve identified these potential issues, you can draw up strategies to mitigate each one.

Create an emergency fund
It’s well worth having a separate pot of money that can serve as a safety net during difficult times, so you can continue meeting necessary expenses from energy bills to staff salaries.

This should be easy to access whenever it’s needed, and ideally be enough to cover around three to six months’ worth of operating expenses.

Make sure you’re properly insured
Insurance is a lifeline in the event of a disaster, so make sure key areas of your business are properly covered and that each policy is suitable for your needs.

Your insurance should be regularly reviewed, as you can never know when you need to turn to your insurance provider, and you don’t want to find yourself without adequate protection when you need it most.

Draw up a crisis communication plan
Communication is key during a crisis, so it’s really important that key stakeholders across the business know exactly how to stay in touch with each other in tough times.

This includes everyone from members of your team to third parties such as customers and suppliers, so you can manage expectations and maintain important relationships at the same time.

Don’t put all your eggs in one basket
Many businesses make the mistake of relying on just one revenue source, so it’s well worth diversifying revenue streams where possible.

For example, you could actively seek to widen your target audience or roll out new products or services.

This could ensure your business is far less exposed to factors beyond your control, such as economic downturns, market fluctuations and changes in customer behaviour.

Get professional advice
You don’t have to create a financial emergency plan by yourself, as there are plenty of professionals who are there to provide expert guidance and support.

A financial planner, for example, can work with you to devise a realistic strategy that reflects your business’s current needs and circumstances.

With an expert at your side, you can make sure your business is resilient, financially sound and able to weather any storms you may face.

If you have any questions about drawing up a financial emergency plan to ensure your business is prepared for all eventualities, please don’t hesitate to get in touch, and we’ll be happy to speak with you.

What do you do with your monthly earnings when they land?

Do you leave all the money sitting in your current account?

Or do you invest some elsewhere, so you can make your money work hard for you and maximise your returns?

Well, a new survey by the Building Societies Association (BSA) reveals that many of us are, worryingly, doing the former rather than the latter.

According to the data, 34 per cent of savers in the UK don’t ever compare the rate on their savings accounts to other alternatives.

Figures also showed that 30 per cent don’t even check what their rates are with their own bank or building society.

Yet 34 per cent of people are storing most of their savings in a current account.

And since these offer little interest at best, they could potentially be missing out on thousands of pounds in what’s essentially free money.

So why are so many people letting this happen?

Well, many of us simply don’t have a disciplined approach to saving.

For example, 33 per cent of those polled said they just put money into savings when they can.

Meanwhile, 34 per cent said they only save whatever they can afford to put aside at the end of the month.

It’s clear that many people need to be taking a more strategic approach to saving if they’re to truly benefit from it further down the line.

By putting some thought and planning into it, you’ll be in a position to not only benefit from more favourable interest rates, but also increase the size of your savings pot.

Of course, you’re a busy person, and we understand that, but making a point of putting a set amount into a high-interest savings account doesn’t take much time and effort.

It’s simply a case of getting into the habit of saving, and having an idea of what you’re saving up for, such as a dream holiday, private school fees or money for a rainy day.

A professional planner can work with you to build a savings strategy, so you can be confident you’re on course to achieve your long-term goals, rather than just hoping for the best.

If you have any questions about planning for the future and maximising your income, please don’t hesitate to get in touch with us, and we’ll be happy to answer any questions you may have.