Published: November 2025
Fever pitch is at its height here at MM Wealth Towers, as we continue to read more of media speculations on tomorrow’s Budget.
In the latest ‘leak’ and contrary to the Chancellor’s Mansion House speech, it might be the Savers who are in the spotlight, as there is talk that the annual cash ISA allowance could be reduced to £12,000 rather than £20,000. Is this a plot to increase consumer spending, or to try increase the inflows to Stocks and Shares ISAs?
Rumours continue to circulate around whether salary sacrifice for pensions could be capped at £2,000 a year to raise additional treasury money. Although this will hit many employees’ salary sacrificing for their future retirement, the main pinch point will be for those who earn between £100,000 to £125,140 and use salary sacrifice to mitigate their marginal 60% tax liability.
The speech that Ms Reeves addressed the Parliamentary Labour Party with last night was to manage expectations that the Budget needed to be seen as a package rather than a ‘pick ‘n’ mix’.
Once again, Inheritance tax is likely to be in the spotlight, with many families still reeling from last year’s Budget, seeing themselves once again having to re-assess their plans to pass on their wealth to their loved ones. There is supposition again from previous years that the 7-year rule is being extended to 10 years instead, with then implications on taper relief.
Other changes could look again towards those sending their children to private school, with Rachel Reeves not ruling out increasing the VAT rate, on top of the 20% applied from the previous Budget.
Homeowners are not immune to the rumour mill, with heightened speculation that a review of all houses in Bands F, G and H will be re-assessed for council tax.
Road users using electric cars may also feel the pinch with reports that EV drivers will be charged 3p per mile from 2028 in additional to the other taxes for having a vehicle use the national highways.
A person earning over £100,000 trying to increase their pension pot for their retirement, putting excess income into savings, driving an electric car and living in a reasonable-sized 4-bedroom house, may need to rationalise it as a package and not feel that it has become personal!
Whatever the outcome of tomorrow’s Budget, the team at MM Wealth will be watching and dissecting what that will mean for our clients and their financial plans.
We are always here to help you with any questions or concerns you may have. If you would like to talk to me or one of our Financial Planners, please contact us on 01223 233331 or email info@mmwealth.co.uk.
Disclaimer
Opinions constitute our judgment as of this date and are subject to change without warning. This article is for general information only and does not constitute advice. All contents are based on our understanding of current taxation and legislation, which is subject to change.
The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.
The Financial Conduct Authority does not regulate estate planning and tax planning.
