Cherry members debate and make predictions for a potentially tough autumn Budget

20 September 2024

Keir Starmer bracing the UK for a painful autumn Budget was one of the many topics recently debated on the Cherryplc.co.uk industry website.

Since taking office in July, Labour has consistently highlighted the challenges it faces in government, with Keir Starmer describing the upcoming October Budget as “painful” and warning that the government will need to make “significant demands” of the public.

Among the concerns expressed by Cherry advisers was the possible alignment of Capital Gains Tax (CGT) rates with income tax, which could potentially affect landlords and small business owners. A uniform tax rate across dividends, CGT, and income tax is anticipated, potentially balanced with higher allowances to support working individuals.

Changes to pension tax relief are also expected, with some advisers predicting a cap on contributions, as well as a potential reduction in tax-free withdrawal amounts.

For businesses, particularly those that operate solely online, there were concerns that new taxes may be introduced to level the playing field with high-street retailers. Advisers speculated that this could include new business rates for online sellers, aimed at revitalising traditional retail spaces and addressing aggressive tax structures.

The key question on many advisers’ minds is how these changes will stimulate economic growth. There is optimism that the Budget will include incentives for private-sector job creation and salary increases, encouraging long-term stability and resilience in the economy.

Donna Hopton, Director at Cherry, said:

“This is just one of the many debates that happen every single day on Cherry. It feels like our members are, wisely, always on ‘high alert’ as they face the need to plan continuously for whatever developments may impact the market. As ever, it is fantastic to see how the debate develops and to read others’ opinions on what may come to pass.

The debates that take place on Cherry are so buoyant and healthy, with such a varied mix of views and assumptions. As ever, new contributors and inputs are always welcomed.

We await the Budget with anticipation, in the knowledge that, as always, whatever happens, intermediaries will find positive and constructive ways to respond.

Our hope is that lenders and providers will seek out new ways, via Cherry, to tune in fully to the valuable intermediary input.”

For more information visit cherryplc.co.uk