Autumn Budget 2024 – Budget changes and financial planning

Once the final legislation on the Budget proposals is published, we think that many of you will need to review your financial position to understand the impact of these changes on your own circumstances.

The financial planning process is ongoing and plans inevitably evolve over time in response not only to tax changes but also circumstances as well. Successive governments have made constant tax adjustments to suit their political and economic agendas and we all have to deal with the financial implications of this.

While the recent changes may not have an impact on your retirement income, for example, your estate planning may need revisiting. While pensions have been a major part of passing wealth down to beneficiaries in the last 10 years, these rule changes will necessitate different strategies. In the past, life cover has been a much bigger part of estate planning and we may see a return to this.

Impact on stock markets

The main UK stock market fell on budget day but has since recovered. There were initial headlines that UK Gilt yields had risen after the announcement. It was feared that there may be increases in Gilt yields similar to those seen after the Liz Truss’s Mini Budget in 2022.  At that time, uncosted borrowing increases saw a much bigger sell-off in Gilts causing yields to increase sharply. Rachel Reeve’s has learnt the lesson and the Office of Budget Responsibility (OBR) provided their economic forecasts that borrowing levels are sustainable.

We provide summaries like this one to provide information to our clients but we think the real value lies with your Old Mill Financial Planner understanding you and your circumstances and then giving advice tailored to your specific requirements.