Introduction

When we write these reports on the chancellor’s Budget speeches – and, more latterly, his Spring Statements – we always try and put them in the relevant political and economic context.

This year it is impossible not to put the Spring Statement in a political context. On Monday night, the Prime Minister flew to Strasbourg and yet another meeting with Jean-Claude Juncker. She claimed to have secured a ‘legally binding’ agreement on the Northern Ireland backstop, but by Tuesday lunchtime, Attorney General Geoffrey Cox was delivering his opinion that ‘nothing had changed.’ With the ‘Star Chamber’ of Brexit lawyers advising MPs not to vote for May’s deal, it seemed impossible that it could get through the Commons, and that duly proved to be the case, as Theresa May lost her second ‘meaningful vote’, this time by 391 votes to 242.

As we write this introduction on the morning of Wednesday March 13^th, the Prime Minister has promised the Commons a free vote this evening on taking ‘no deal’ (effectively leaving the European Union on March 29^th and defaulting to World Trade Organisation rules) off the table. This seems likely to be approved by the Commons, who will then presumably pass a further motion asking for an extension to Article 50.

Whether the motion to remove ‘no deal’ has any force in law and whether the EU will agree to an extension of Article 50 are both subjects that are yet to be endlessly debated. It may be that by the time you read this, the situation will have changed again – but the practicalities of getting a report on the Spring Statement to clients quickly means that we had to settle on a cut off point. As we all know by now, with Brexit there is barely a day that goes by without the situation veering one way or another, but the Spring Statement waits for no man or woman, including Theresa May.

You wonder how history will see Mrs May and there is a suspicion that neither said history, nor the management text books, will be kind to her. As the Spectator put it on Tuesday night, reacting to May’s decision to grant a free vote on ‘no deal’, ‘for the governing party to have no position on the most important issue to come before the Commons in years is remarkable.’

The economic background

It’s against this most turbulent and febrile background that the chancellor stood to deliver his Spring Statement. As usual there was plenty of information already in the public domain which formed the economic background to Philip Hammond’s position as he prepared to deliver his statement.

Mr Hammond’s views on Brexit, for example, are well known. Despite his own constituency voting to leave the EU, the chancellor has made no secret of his opposition to the referendum result and recently referred to the “Brexit wing of the Conservative party”.

In the days leading up to the Spring Statement, he freely talked of the purse strings being opened if MPs backed the Prime Minister’s withdrawal agreement – so one would presume that ‘no deal’ will see those purse strings staying tightly drawn.

As always with the economic news, you can choose to see the glass as half-full or half-empty. January figures from the Office for National Statistics showed that the UK economy had grown by 0.5% – the biggest increase in monthly output since 2016 and more than double economists’ predictions of 0.2% growth. The service sector returned to growth of 0.3% while manufacturing was up by 0.8%: the construction sector was also up, by an impressive 2.8%.

The consensus among economists is that the UK will grow at 1.3% to 1.4% this year, with inflation in January falling to a two year low of 1.8%. Earlier figures from the ONS showed that 2018 ended with 444,000 more people in work than a year previously, and that 60,000 fewer people were reliant on zero-hours contracts.

Clearly more people in work translates to more tax receipts for the government and borrowing fell to its lowest level since 2001 in January. In the same month, the government collected £21bn in income tax and corporation tax, leaving a surplus of £14.9bn in the month. The government should also be back on track to have a smaller deficit (the amount it needs to borrow to fund spending) in this financial year.

But the continuing confusion over Brexit cannot be helping business, with CBI director-general Carolyn Fairbairn saying that any extension to Article 50 “should be as short as realistically possible and backed by a clear plan.”

Stephen Phipson, chief executive of manufacturers’ group Make UK, was rather more blunt, saying, “It is now essential that Parliament brings the curtain down on this farce and removes the risk of no deal.”

Sentiments the chancellor would unquestionably agree with: so what did he have to say?

Philip Hammond’s introduction

The chancellor – hair freshly cut for the occasion – rose to speak after a Prime Minister’s Questions which featured a slew of jokes about Theresa May’s lost voice.

He wasted no time in making his views on Brexit even better known, and returned to the topic consistently throughout the speech. The economy was “robust” he declared, but there was a “cloud of uncertainty” hanging over it.

Despite this, the news on the economy was good, with nine years of uninterrupted growth, 3.5m new jobs created and the fastest rate of wage growth for ten years. “All,” said the chancellor, “thanks to the hard work of the British people” – provided, of course, that we reach a deal with the European Union.

The economic forecasts

The chancellor unveiled the growth forecasts from the Office for Budget Responsibility: 1.2% this year, followed by 1.4% in 2020, then growth of 1.6% for each of the next three years. Those growth forecasts were better than those for the German economy and would, he said, see the creation of 600,000 new jobs in the UK by 2023. Aiming the first of many barbs at the Labour front bench, the chancellor stressed that 96% of the new jobs created in the UK last year were full-time jobs, and that the OBR expected wage growth of 3% or higher throughout each of the next five years. With the OBR forecasting that inflation would stay close to the target level of 2%, that would mean “real wage growth.”

The public finances

Turning to the public finances, the chancellor stated that government borrowing this year would be 1.1% of GDP – equal to £130bn less than “under the last Labour government.”

Total government borrowing was expected to be £29.3bn in this financial year, falling to £21.2bn next year and falling further to £17.6bn, £14.4bn and then £13.5bn by 2023/24, to give the lowest government borrowing in 22 years.

Total debt as a percentage of GDP would also fall over the same period, from 82.2% next year (having reached a peak of 85.1% in 2016/17) to finally reach 73% of GDP by 23/24. The chancellor stressed that the public finances had continued to improve since the Autumn, with the forecasts for borrowing and debt consistently lower in the Spring Statement than they had been in the Budget.

All this added up to what the chancellor described as a “journey of recovery” from the last Labour government as he gave himself a hearty pat on the back from having had such a clear plan, “since I became chancellor in 2016.” In fact, the chancellor was – given the background to his statement – quite upbeat.

He made much of the “investment” in the public finances – a total of £150bn since 2016 – highlighting the Prime Minister’s announcement of £34 billion of additional funding per year for the NHS. The chancellor then went on to talk of the benefits that could flow from a ‘deal dividend’, assuming that a deal could be reached with the EU. Reaching a deal would, he said, release both a fiscal dividend and would provide a boost to business confidence.

He also gave a very clear indication that his Autumn Budget would be long and complicated, as he announced a comprehensive three year spending review to start before Parliament’s summer recess. By that time, of course, he should know the details of the UK’s departure from the EU. What is less certain, though, is whether he will be in a position to deliver his planned spending review. If Theresa May is not Prime Minister at that point, which seems entirely plausible, then there is very little prospect of Mr Hammond being Chancellor come the Autumn. The mooted spending review and significant Autumn Budget are therefore things to keep an eye on for another day and, potentially, another chancellor.

Written Ministerial Statement

At this point in his speech, the chancellor made a fleeting reference to a “WMS”. Given the state of the Commons over Brexit, you could be forgiven for thinking that might refer to Weapons of Mass Speculation. Sadly, the answer was rather more sober: it was a Written Ministerial Statement which, effectively, sat alongside the statement the chancellor delivered in the Commons, much like the full Budget document does during the chancellor’s more significant Autumn Budget.

This confirmed all of the points the chancellor made in his speech, along with further commitment to crack down on offshore tax havens and measures to curb the abuse of research and development relief by small and medium sized firms.

There was also a further step on the road to ‘making tax digital,’ with digital record keeping for VAT now mandatory from April 1^st. More details on the most salient points from the WMS are included below, although it is worth noting that there is scant detail to back up most of these announcements.

Personal taxation and allowances

Business and business taxation

Plans for a ‘no deal’ Brexit

Despite the details contained in the WMS and covered above, the Spring Statement was never going to feature a large number of specific announcements on taxation or spending. When he became chancellor, Hammond announced that he wanted a once-a-year Budget. The chancellor has been successful in ushering in this new regime of fiscal announcements, to the point where the BBC actually dismissed the Spring Statement as ‘not a major fiscal event’ in their introduction.

It was, however, very clearly a political event, with the chancellor following the public finances with yet another attack on the possibility of a ‘no deal’ Brexit. Eventually, though, he conceded that the government had made some plans for the possibility of leaving the EU without a deal, with both border regulations and a temporary tariff schedule having been put in place. There was, though, “no fix” for no deal: fortunately, Hammond said he was confident of an eventual deal that would remove the “spectre of uncertainty” which seemed to haunt the entire speech.

Spending plans

As Philip Hammond always does, he listed a raft of spending commitments or money that had already been invested on the national infrastructure. £37bn on the national productivity fund via investments in road, rail and the still painfully slow investment in fibre broadband.

There was up to £260m for the ‘Borderlands’ growth deal (for the England/Scotland border region), £100m for Carlisle from the Housing Infrastructure Fund and potential further investment in mid-Wales, Derry and Londonderry.

The chancellor congratulated himself on having ended Labour’s Private Finance Initiative – and then talked about private investment in the UK’s infrastructure which, to the seasoned political observer, might sound like much the same thing.

The UK as an open economy

The next section of the speech dealt with the UK as an open economy and the chancellor announced moves to ensure that the UK could still attract skilled people from around the world. He stated that from June 2019, citizens of the US, Canada, South Korea, Singapore, Japan, Australia and New Zealand would be able to use e-gates at UK airports and Eurostar terminals and that paper landing cards will start to be abolished from the same date. In addition, jobs requiring PhD level qualifications would be exempt from the visa cap rules.

Whilst the chancellor was on the subject of technology he spent some more money: £79m for a super-computer in Edinburgh, £45m on genomics research and £81m on state-of-the-art laser technology in Oxfordshire. “Cutting edge investment, Mr Speaker,” he quipped and Tory backbenchers duly convulsed with laughter.

Having announced the Digital Services Tax in his last Budget, the chancellor announced further measures to protect the consumer in the digital economy, and that the Competition and Markets Authority would be looking at digital advertising. Inevitably this lead to the chancellor’s oft-repeated claim that the ‘digital giants’ will pay their fair share of tax.

Housing and the environment

The chancellor announced that he would end his speech with remarks on housing and the environment and, once again, confirmed his commitment to “fix the broken housing market,” with the government on track to deliver 300,000 new homes a year. There would be an investment of £717m to ‘unlock’ 37,000 new homes in London, Cheshire and in the Oxford/Cambridge Arc. In addition, the government would guarantee up to £3bn of borrowing by housing associations, to support the delivery of around 30,000 affordable homes.

On the environment – “clean growth” as the chancellor termed it – the government would take steps to help small businesses reduce their energy bills and carbon emissions and also give people the option to travel ‘zero carbon.’ At the moment, this is more of a promise than a reality, but it appears that the government wants to take steps to help consumers understand the carbon impact of their journeys, and look at whether travel providers should be required to provide carbon offsets to their customers.

There was also a commitment to make sure that wildlife was not compromised in delivering new infrastructure projects, with the government mandating that new developments in England should deliver a ‘net gain’ for biodiversity.

One last thing…

Of course, when he said he’d finished, the chancellor didn’t actually mean that and finally finished with three more announcements. Firstly, that from the next school year, the government would fund the provision of sanitary wear for girls, ending the ‘period poverty’ which so many MPs had campaigned against.

There were also some warm words on speeding up payments for small and medium sized businesses and lastly an immediate £100m to police forces in England, specifically to pay for overtime to tackle knife crime.

“There was,” said the chancellor, “a huge opportunity ahead for the UK. We are the fifth largest economy in the world… with no limit to our ambition.” Provided, of course, in the chancellor’s view, that Brexit proceeds in as orderly a fashion as possible from this point.

Whether he will still be chancellor when the Autumn Budget comes around is anyone’s guess. As we have written above, his continued occupation of 11 Downing Street is almost wholly dependent on Theresa May remaining his next door neighbour. Depending on what happens with Brexit, it is entirely possible that Hammond – or his successor – could be making another Statement well before the planned Autumn Budget.

We are obviously in uncharted waters and there will inevitably be many twists and turns in the road ahead. It may even be that some of the comments written here on Wednesday afternoon are out of date by the time you receive this report.

More than ever, we would stress that if you have any questions at all on what we have written above then please do not hesitate to contact us. We are never more than a phone call or an email away and we appreciate that many clients will want some reassurance in these challenging times.

The Department for Work and Pensions has hit its target of bringing 10 million workers into occupational pensions, a year ahead of schedule.

To give that figure a sense of perspective, 10 million is pretty much the entire population of Sweden.

The final stages of the programme’s roll out concluded last year, with contributions to an individual’s pension pot rising to 5%.

Many British pensioners choose to move abroad, often in search of warmer climes and a more comfortable retirement.

The stereotypical idea of retiring abroad often involves moving to a mediterranean country. However, only one mediterranean country featured among the top 5 countries from which British expat pensioners claimed their state pension. This indicates that things might be changing…

Here are the top 5, in descending order:

Since the release of the film Mary Poppins Returns in December, it’s taken over $250m, making it a financial success. The story of the film itself however seems to recommend a few ways of making your own personal finances successful too. With the original set in 1910, the sequel takes us to 1935 where Michael, just a boy in the first film, is now a man with children of his own. Unfortunately, due to him being unable to repay a loan, he finds himself face to face with the frightening possibility of having his home repossessed.

Thankfully for Michael, in the original film his father gives him shrewd advice to invest his pocket money of a tuppence, rather than giving it to the women selling bird food. Quick reality check; even over the course of 25 years, the compound interest on a mere tuppence is extremely unlikely to have been enough to help Michael out of his rut in the real world. Realistically, with an average interest rate of 6%, saving two pennies wouldn’t even bring you in a single pound. Perhaps his father invested it particularly wisely, finding the unicorn company of his day, perhaps putting it into oil stocks, but even then it would require a huge return. It’s a film, after all, and the overriding message of being responsible with your finances is a noble one, so we can allow them a bit of creative licence.

Beyond taking the advice of investing two pence too literally, there are some positive messages and useful takeaways from Mary Poppins Returns. Ultimately, the tone is optimistic; the suggestion being that even if you’re in a particularly difficult financial position, there’s always a solution. It also suggests that these solutions are easier to come by with a bit of forward planning.

There’s no reason why being a parent, and particularly being a non-earning parent with commitments to their children, should put you at risk of decreasing your state pension entitlement. Currently, however, there are potentially hundreds of thousands of people in this exact position – although thankfully, there are steps to take so that it can be avoided.

In order to be entitled to the full new state pension, you will generally require 35 years of national insurance contributions to qualify. Those years of contributions can be difficult to accumulate if you’re out of work for whatever reason. If you don’t already pay national insurance contributions, perhaps because you’re staying at home to look after children, you are able to build up your state pension entitlement by registering for child benefits, as long as you’re a parent of children under 12.

Figures supplied to the Treasury by HMRC suggest that there could be around 200,000 households missing out on these pension boosting entitlements. If the child benefits are being claimed by the household’s highest earner, and not the the lower earner or non-earner, these potential national insurance contributions can fall by the wayside. Treasury select committee chairman and MP Nicky Morgan says; “The Treasury committee has long-warned the government of the risk that for families with one earner and one non-earner, if the sole-earner claims child benefit, the non-earner, with childcare commitments forgoes National Insurance credits and potentially, therefore, their entitlement to a full future state pension.”

We’ll be the first to admit that your personal finances aren’t the easiest thing to fall in love with. It can be easy to bury your head in the sand when it comes to both your regular expenditure and investments.

There are several reasons for this. First of all, money can be a source of stress. We’re sure you’re well aware of how crunching big numbers in your head can keep you awake into the small hours of the morning. Or how not knowing whether you can afford something you really want can fill your life with uncertainty.

Secondly, some aspects of finance can seem rather boring. To the untrained eye, the daily performance of the FTSE, foreign currency exchange and bond markets can look intimidating. We actually find them incredibly exciting, but we understand that this isn’t for everyone.

We think the best way to fall in love with your finances is to get a bit creative. It helps to really understand the relationship you already have with money so you know what you’re dealing with. As with a partner, you have to really get to know them before you fall in love. Here are some questions you can ask yourself to ‘break the ice’ with your finances:

What’s the most fun, frivolous thing you’ve ever bought?
Answering this should help you get a handle on whether you’re someone who likes to splash out from time to time, or if you prefer to sacrifice a bit of enjoyment for personal security. If you have made any such purchases, do you consider them to have been worth it, or do you find yourself regretting that you hadn’t spent the money a little more practically? The answer to this could provide some guidance if you have the opportunity to make similar purchases in the future.

Do you take pride in knowing your net worth?
If you take pride in your net worth, it suggests that a large part of your happiness hinges on the money you have accumulated over your life. You’re likely to be someone for whom a high salary forms a large part of what they enjoy about their career, rather than someone who’d be content working in a job with lower pay.

What’s your dream retirement scenario?
Looking at what you want in retirement will let you know how much you need to prioritise saving for retirement. If you plan on living adventurously you’ll need to save considerably more than if you think you’ll be happy having a quiet retirement. Trips of a lifetime don’t come cheap, so the sooner you start saving and investing, the more you’ll be able to do.

Like all long-term relationships, your relationship with your finances won’t always be easy. Good relationships take work, but the rewards are more than worth it.

It is now just two months until the UK is – in theory – due to leave the European Union. In this special report we have tried to summarise the current position for you: what has happened, what might happen and – most crucially of all – what it might mean for your savings and investments.

But first, a word of caution. The bulk of this report was written on the morning of Saturday, January 26th: practicalities dictate that it is always necessary to write a couple of days ahead of sending something to our clients. Be aware therefore, that events – and we have never known anything as unpredictable as these Brexit negotiations and the attendant political manoeuvring – may have moved on by the time you read our report.

The History
It seems a remarkably long time ago but on Thursday 23rd June 2016, the UK went to the polls to vote on our continuing membership of the European Union, with then Prime Minister David Cameron repeatedly stressing that if voters chose to leave the EU they would be choosing to leave the single market and the customs union, and promising that whatever the result, “Parliament will enact it.”

17.4m people duly voted to leave the EU, with 16.1m voting to remain. David Cameron promptly resigned and Theresa May – who had supported Remain in the Referendum campaign – took over as Prime Minister.
Article 50 – the UK’s formal notice to leave the EU – was triggered on 29th March 2017, meaning that the date of leaving the EU was set for Friday, March 29th 2019.

As everyone reading this report will know, there then followed two years of torturous negotiations with the EU over the terms of the UK’s ‘divorce’, with the Prime Minister agreeing to pay the EU a ‘divorce settlement’ of £39bn.

She eventually brought her Withdrawal Agreement (frequently shortened to WA) before parliament on January 15th, having postponed an earlier vote as she feared a heavy defeat in the Commons. However, the result in January was exactly what had been feared in December. Theresa May suffered a heavy defeat, losing the vote by 432 votes to 202. More than 100 Conservative MPs voted against the deal – although they very quickly returned to the fold to defeat an Opposition motion of no confidence in the Government.

This week will see another vote in the Commons on Tuesday 29th when Theresa May will put ‘Plan B’ before parliament – although there are dark mutterings that ‘Plan B’ will look very much like ‘Plan A’.

What does the Withdrawal Agreement propose?
Theresa May’s deal includes five main subjects. Firstly, there is the size of the ‘divorce bill’, which – as above – currently sees the UK paying the EU £39bn. There is then the rights of EU citizens in this country, fisheries, a ‘transition period’ and – most contentiously of all – the ‘Irish Backstop’. Let us look at these in more detail.

Freedom of Movement and EU Citizens’ rights
There is no doubt that ending freedom of movement was a contributory factor to many people voting ‘Leave’ and it is currently scheduled to end when the transition period finishes. Future immigration rules are not included in the negotiation process, meaning that the UK will have the flexibility to set its own criteria.
The existing rights of EU citizens living in the UK and Britons living in Europe have already been guaranteed in the negotiations.

Fisheries
Almost without exception, UK constituencies that have a significant fishing industry voted to leave the EU. The withdrawal agreement only says that both sides will make a commitment to use ‘best endeavours’ to reach a future deal. Essentially, UK fishermen see this as very much favouring the EU and giving EU fishing vessels licence to continue what is seen as the overfishing of UK waters, without any commitment on when this will end.

The transition period
Under the current proposals, the UK will leave the EU on March 29th but remain in the single market – and be bound by its rules – until the end of December 2020, theoretically giving the two sides time to work out a new trading relationship. The transition period can be extended by joint agreement before July 1st 2020 if both sides agree more time is needed.
During the transition period, the UK will have to follow all EU rules and European Court of Justice rulings – another big bone of contention with Leave supporters.

The Irish Backstop
The Irish Backstop has been the biggest sticking point in the negotiations – and certainly the source of much of the political wrangling. So what exactly is it? It is effectively an insurance policy, designed to make sure that the border between Northern Ireland and the Republic of Ireland remains open as it is today – that is, as a ‘soft’ border with very easy movement (for both goods and people) between the two parts of Ireland.

The backstop arrangements were agreed between the UK and the EU in November 2018 as part of the draft withdrawal agreement. If there is no agreement between the UK and the EU before March 29th then that raises the possibility of a ‘hard’ border between the North and the Republic, with all the consequent practical and political difficulties.

Inevitably, this is an emotive subject: the Democratic Unionists – the party Theresa May is reliant on for her parliamentary majority – are adamant that Northern Ireland cannot be treated differently to the rest of the UK. Advocates of a very soft Brexit maintain that a hard border between the North and South would jeopardise the Good Friday Agreement and risk a return to the ‘troubles’. Brexiteers suggest there is no realistic prospect of a hard border whatever happens, and that the threats are just part of the EU’s negotiating stance and a ploy to keep the UK chained to the EU ‘in perpetuity’.

The draft deal envisages a decision being made in July 2020 on what would have to be done to make sure the border stays open after the transition periods. If a new trade deal is not in place, Britain would need to extend the transition period, go into a customs union that would cover all of the UK – or treat Northern Ireland differently to the rest of the UK.
The DUP will not have this last option and Brexiteers will not have the prospect of an indefinite customs union, arguing that the current arrangement gives the EU no incentive to make a deal.

You pay your money and you take your choice. What is certain, though, is that you will hear the words ‘Irish backstop’ an awful lot of times between now and the end of March.

Would ‘No Deal’ really be that bad? And is it likely to happen?
For most people, their view on a ‘no deal’ Brexit probably depends on how they voted in the original Referendum. If the UK were to leave the EU on March 29th without a deal, it would revert to trading on World Trade Organisation rules (which govern most of the trade done throughout the world). So there are rules and regulations in place to govern what would happen after March 29th.
It is important to note the practicalities though. There is emphatically not a majority in parliament for a ‘no deal’ Brexit. It may be the most popular option among the British public – a recent opinion poll placed it ahead of Theresa May’s deal and remaining in the EU – but it is not the most popular option among MPs. At this stage it still feels that doing some sort of deal with the EU is far more likely than a ‘no deal’ Brexit – and Sunday’s papers brought us threats of several Cabinet resignations if the Prime Minister goes ahead with this option.

Could there be a second Referendum?
Much has been made of a campaign for a ‘People’s Vote’ – a second Referendum on membership of the EU. The prospect of this now seems to be receding, with increasing opposition to a second vote in both main parties. A delay to Brexit – giving the Government more time to reach a deal with the EU that it can get through Parliament – seems far more likely.
What will it all mean for your savings and investments?

At the beginning of the year, the FT-SE 100 index of leading shares stood at 6,728 having fallen 10% in the final quarter of the year and 12% for the year as a whole, as world markets suffered their worst collective year since 2008. As we write, the FT-SE stands at 6,809 – barely up on the year but certainly not having fallen any further for the continuing uncertainty over
what will happen with Brexit.

When he was Chancellor, George Osborne frequently made the point that world events had more impact on the UK economy than anything he did as Chancellor, and I suspect that the same might be true for Brexit. China’s economy ‘only’ grew by 6.6% last year and the consensus for this year appears to be an even lower 6.3%. Weak economic data is threatening growth in the Eurozone and the trade dispute between the US and China remains unsettled.

So Brexit is by no means the only game in town, and while ‘no deal’ might give the stock market a short term shock, in the long term – and remember that saving and investing is always for the long term – other events will be at least as important as Brexit. That is why we review all your savings and investments regularly, and make sure that they remain in line with your overall financial planning requirements.

Monday morning update…
As we have noted above, the bulk of this report was written on Saturday, January 26th. But over the weekend…
● Tory rebels are apparently prepared to throw their weight behind a plan demanding changes to the Irish Backstop, but which otherwise supports Theresa May’s plan
● Irish Deputy Prime Minister Stephen Coveney has said that the Backstop “cannot be changed”
● Education Secretary Damian Hinds has said that the UK “will definitely” be leaving the EU on March 29th
…So nothing is certain and – as someone said when the UK/EU negotiations started – “nothing is agreed until everything is agreed”.

The only thing you can count on is that, whatever happens, we will be here to answer any questions you might have, whether it is on Brexit or on any other events affecting your savings and investments.

From January 9 2019, the cold-calling of savers about anything to do with their pensions will become illegal. The new law doesn’t just cover phone calls. Any unsolicited emails or text messages about your pension will also be illegal.

As it stands, not every cold-call about you receive about your pension is a scam, though many scammers use it as a tactic to get their hands on your retirement savings. When the ban comes into force, you can be sure that any out-of-the-blue call about your retirement savings is definitely a scam.

The introduction of pensions freedoms in 2015 is widely cited as the reason for the alarming increase in pension fraud over the last few years. Scammers have seized upon these rules, which give savers much more flexible access to their retirement savings, to get unsuspecting individuals to transfer their cash.

Key warning signs of pensions scams include offers of free pension reviews and promises of incredibly high rates of return, among others. Citizens Advice report that as many as 10.9 million people were cold-called about their pensions in 2016 alone.

In the wake of this rise in scamming, savers have been turning to financial watchdogs in huge numbers for help. Between August and October last year more than 173,000 people visited the FCA’s ScamSmart website for more information.

Pension fraud victims lost £23 million in the last year alone, up £9.2 million from the year before. The real amount could be even higher as only a minority of victims report being scammed.

From 9th January, when you put the phone down on would-be pension scammers, you can tell them that they have broken the law just by contacting you.

If you suspect you have been victim to a pension scam, you should report the scam or fraud to Action Fraud as soon as you can. They will pass the information to the National Fraud Intelligence Bureau who will analyse the case to find viable lines of enquiry. If they find any, they will send the report to the police for investigation.

Inheritance tax is enormously unpopular to say the least. A YouGov poll found that 59% of the public deemed it unfair, making it the least popular of Britain’s 11 major taxes. What’s more, the tax has a limited revenue raising ability, with the ‘well advised’ often using gifts, trusts, business property relief and agricultural relief to avoid paying so much.

As it stands, the tax affects just 4% of British estates and contributes only 77p of every £100 of total taxation. This puts the tax in the awkward position of being both highly unpopular and raising very little revenue. At the moment, the inheritance tax threshold stands at £325,000 per person. Anything above this is subject to a 40% tax.

Inheritance tax is seen as unfair because it is a tax on giving (while normal taxes apply to earnings) and it is a ‘double tax’ on people who have already earned – and been taxed on – their wealth.

However, the Resolution Foundation, a prominent independent think tank, has suggested an alternative.

They propose abolishing inheritance tax and replacing it with a lifetime receipts tax.

This would see individuals given a lump sum they could inherit tax free through their lifetime and would then have to pay tax on any inheritance they receive that exceeds this threshold. The thinktank suggests that by setting a lifetime limit of £125,000 and then applying inheritance tax at 20% up to £500,000 and 30% after that would be both fairer and harder to avoid.

They predict that a lifetime receipts tax would raise an extra £5 billion by 2021, bringing in £11 billion rather than the £6 billion inheritance tax currently raises. In a time of mounting pressure on public services like the NHS, this additional revenue would be welcomed by many.

Moving away from inheritance tax would reduce many of the current ways to manage the amount of assets an individual is taxed on upon death. For instance, people would not be able to reduce the size of their taxable estate by giving away liquid assets seven years prior to their death.

The Resolution Foundation also suggests restricting business property and agricultural relief to small family businesses.

The lifetime receipts tax is, at the moment, just a think tank recommendation and is not being considered by the government.

However, the government are trying to introduce changes to probate fees that would see estates worth £2 million or more pay £6,000 in probate fees, up from the current rate of £215. This proposal has seen little support in the House of Lords and the government may consider scrapping the tax.