Investment Insights - Hot Topics July
Welcome to Balance: Wealth Planning's Hot Topics!
Balance: Wealth Planning's July edition of Hot Topics.
Every month, our financial planners will collate the latest 'Hot Topics' within the industry, which we will share with you. The purpose is to update you regularly as these topics are happening and help cover any frequently asked questions.
In this special General Election addition, one of our financial planners, Declan Gamble is here to guide you through.
So, without further ado, please enjoy this edition of Hot Topics!
General Election in summary
The result of the 2024 General Election saw Keir Starmer's Labour Party win a majority for the first time since 2010. In this months hot topics, we take a look at some of their promises and how they might impact the UK financially.
There were no major announcements regarding personal finance or changes to taxes. So we will have to wait until the Autumn Budget (predicted to take place mid-September/October) to find out any details of what the government plans for individuals, businesses, and investors. Economists are unanimous that the current tax and spending plans are sufficient to fund Labour's manifesto pledges.
Legal Requirement for the OBR to assess government fiscal events - won't affect fiscal policy; it's an effort to keep financial markets on the side.
Pension Scheme bill: This bill will widen the focus from just cost to value, which should lead to improved outcomes for customers. The key to this bill is the proposal to consolidate defined contributions into small pots. This can simplify people's pensions, given that we now live in an economy where people will have multiple jobs during their careers and, therefore, various pensions. In 2022, there were estimated to be £26.6 million of lost pension pots. There are a few ideas about how this consolidation will work, but we should get more specific details in the coming months.
VAT on Private Schools – school fees have increased ahead of inflation for the last 25 years, but now with an additional 20% increase, families will need adjust their budgets to accommodate this.
Looking ahead
As Labour settles into its new office, we will see which strategies will come to fruition and what measures will be taken to implement them. With changes proposed to pensions, investments, taxes, and more, it might be appropriate to review your goals and plans to fit the new policies under a Labour government, which is what we are here for. If you have any questions regarding this new government and what this could mean for your finances, please get in touch.
Please note: This update is not financial advice and is provided for information only. You should not take any action before speaking to a Financial Planner, who will confirm what suits you.
Please feel free to share it with anyone who may be interested. If you have any questions, please get in touch with your usual contact or investments@balancewealth.uk.