The 2025 Autumn Budget is fast approaching – 26^th November.  It has, once again, been the cause of much speculation and discussion.  It is one of the most significant events of the year for businesses, individuals, everyday savers and investors alike.

Last October, the Chancellor’s first budget saw a record £40bn of tax rises, with a commitment that she was not looking to repeat this in 2025.  However, in her pre-Budget speech, it was strongly signalled that tax increased may be coming, saying: “If we are to build the future of Britain together, we will all have to contribute to that effort.” This would be a reversal of Labour’s manifesto pledge not to raise income tax, VAT or National Insurance.

Other policies touted for change include ISA limits, property taxes, pensions.

What stood out ahead of the last budget, was the genuine fear that was created through the speculation of what may happen.  As we move closer to the Chancellor’s budget speech in a week’s time, that upswell of fear is once again being communicated through a variety of channels.

When we look back to last year, we saw people accepting speculation as being guaranteed, and they panicked. And that is beginning to happen again this year.

The result last Autumn?  A lot of extra tax-free cash was withdrawn from pensions last year, in and around the budget, and of course nothing changed with regards to tax-free cash.  With no cooling off period for withdrawing a Pension Commencement Lump Sum, people took the cash out and when nothing changed had no way of putting it back again.

People look money out of a very tax efficient environment and put it back into the tax system.  Some of that cash may have been sheltered in individual savings allowances, but with that capped at £20,000, there was a lot of extra money sat in places that were not protected from the effects of inflation.

People’s reaction to fear, was to make quick and, often, unadvised actions, and that resulted in long-term losses.

Our simple advice – don’t panic.  Don’t make quick decisions without professional guidance.

Taylormade Financial Management is a long established Independent Financial Advisory practice and well equipped to help clients chart the turbulent waters that surround budget announcements.  Our mission is to provide first-class financial planning advice to individuals, companies and trustees.

Important Disclosure: content provided does not consider individual circumstances and does not constitute personal advice.  The value of investments and the income from them, can go down as well as up, so you may get back less than you invest.