Commenting on the announcement, David Brooks, Head of Policy at Broadstone said: “Looks like we’ll have a late budget this year as the Chancellor gives herself time to come up with a plan to get the economy firing and reduce government debt. Even though Torsten Bell is part of the drafting team, it still seems unlikely that pensions will be able to give the quick wins needed in November’s Budget. However, this government has got form already in making decisions for the longer term, for example, pushing through pension and investment reforms. To this end, the rumours around tax-free cash amendments feel too reactionary to be on the drawing board. However, the long-proposed pensions tax relief changes look likely to be an attractive fiscal lever for the Chancellor. This would need to come with a lengthy technical consultation but changing the bonus for saving into a pension to a flat rate could save the government some money and also boost pension savings for the lower rate taxpayers. Of course, this would drive concerns around intergenerational unfairness but calls to introduce NI contributions - of some level - for current pensioners could go some way to balancing this by asking wealthier pensioners to shoulder some of the country’s current burden, especially on the NHS. However, as always, we won’t know anything for certain until the day, so it’s best to be wary of speculation and avoid making any life changing decisions on rumours – we’ve got a long run up this year. Good luck!”
Commenting, Rebecca Williams, Divisional Lead of Financial Planning at Rathbones, says: “With the Budget now set for 26 November, it feels like a rather late fiscal event. But with public finances stretched thin, the delay underlines that ministers are in full-on thinking mode ahead of what is shaping up to be one of the most consequential Budgets in a generation. It seems inevitable that some form of tax rises – stealth or otherwise – will be unveiled as the government looks to balance the books. For households, the long wait only prolongs uncertainty at a time when many are still grappling with the cost-of-living squeeze. Markets and savers alike dislike being left in the dark, and it is little wonder we’ve seen a surge in queries around pensions taxation, estate planning, and whether it remains worthwhile to hold on to buy-to-let properties amid growing speculation. But while it is sensible to keep an ear to the ground, it is important to remember that headline announcements grab the spotlight while quieter changes - such as freezes to allowances - can be just as impactful over time. Whatever the shape of the Chancellor’s statement, it remains good practice to avoid knee-jerk reactions based on rumour. This period of waiting can be used productively: to review budgets, shore up financial resilience, and stress-test long-term plans. Above all, good financial decisions should be grounded in sound advice and verified information. Making the most of tax-free allowances – such as ISAs and pensions – remains a prudent move whatever the future may bring. Budgets come and go, but the principles of sensible financial planning stand the test of time.”
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