Why it’s important to stay calm ahead of the Autumn Budget
Despite all the speculation and rumours circulating about tax increases and other measures, you need to stay focused on your long-term plan.
As last year’s Budget approached, the government spoke about the need to plug a “£22 billion black hole” in the public finances. We now have a date for the Autumn Budget 2025, and the deficit this time around is reportedly even larger.
When 26 November arrives, it is reported that Rachel Reeves will be hoping to find £50 billion to meet her own fiscal rules, according to the National Institute of Economic and Social Research. And she’ll want to do so while maintaining her party’s promise not to increase taxes on “working people”, specifically, Income Tax, National Insurance, and VAT.
With the Budget a month later this year, the longer wait means there has been even more time for speculation and rumour, which we know can be unnerving, unsettling, and often, downright unhelpful.
However, the important thing is to keep calm and to avoid making hasty and emotional decisions. Making knee-jerk decisions before any changes are confirmed doesn’t make sense and could end up harming your long-term financial plan.
That’s the raison d’être behind this article – to explain why staying calm is key and to reassure you that we are here for you if you feel you need any pre-budget help or advice. We also detail below how we plan to keep you up to date on Budget Day itself.
You need to stay calm and avoid emotional decision-making
You will have probably seen some alarming Budget headlines already. Rumours abound regarding potential changes to tax rates, pension tax-free lump sums (again), pensions, and ISA thresholds, as well as new taxes aimed at the wealthy and at landlords.
But these are only rumours, and acting on rumour alone is dangerous. We saw this just last year when speculation about tax-free pension lump sums saw a pre-Budget dash to cash out. The rumoured changes didn’t occur, and many were left regretting their hasty decision.
It’s impossible to make Budget recommendations before the big day, so we won’t. Instead, we’d suggest staying calm for now, and avoiding knee-jerk reactions based on headlines alone.
However, should you have concerns and want to discuss them, please feel free to contact us and we’ll be very happy to chat.
The details of the Budget will only become clear when the chancellor stands at the despatch box on 26 November. From that point on, we’ll be able to provide specific insights into how any changes could affect you.
We’ll keep you up to date with all Budget announcements and explain what they might mean for you
Our aim is to keep you informed while providing peace of mind. Because of this, our team will be watching the Budget keenly, and we’ll be producing a Budget update on the afternoon of 26 November outlining the key takeaways from the chancellor’s speech and, where possible, the likely effects of any changes.
If the Autumn Budget brings in changes that could impact on your finances, we can work with you to review and update your long-term financial plan to ensure it continues to reflect both current legislation and your individual circumstances.
So please do get in touch if any aspect of the Budget announcement causes you concern, or if you’d like to talk to one of our team about your long-term financial plan.
Please note:
This article is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
All contents are based on our understanding of HMRC legislation, which is subject to change.
All information is correct at the time of writing and is subject to change in the future.