Member Article

Budget 2016: Gale and Phillipson’s personal finance predictions

With George Osborne set to deliver his Budget Statement on Wednesday, updating the nation on the government’s plans for the economy, independent financial planning and investment management firm Gale and Phillipson has been setting out its predictions for the world of personal finance.

Phil Morris, head of distribution at Gale and Phillipson, said: “Plans to move to a flat rate of pensions tax relief have reportedly been scrapped, but we will have to wait until Wednesday before we know for sure.

Research suggests that cash from relaxation of rules on accessing pensions pots has been spent on home improvements, but it’s home building that the Chancellor is interested in. Don’t be surprised to see yet more measures to encourage housebuilding and/or relaxations of planning rules. Another extension of Help to Buy could be on the cards.

He may introduce an upfront fee for appeals to business rates decisions. There have already been moves to give local authorities more control of business rates, but the Chancellor may go further as the high street continues to struggle against online retailers.

Measures to help manufacturing, against the background of the Port Talbot steelworks closure and industry slowdown, can be expected. Nearly all economic growth is currently coming from the service sector.

The Budget can’t be divorced from party politics, and we know the Chancellor would like to make a move into number 10. Cynical observers might expect to see some measures designed to appeal to the party’s right wing. We may also see some surprise announcements, since the Chancellor has apparently been crowdsourcing ideas for the Budget.

We’re also bound to hear more of Mr Osborne’s favourite phrases like ‘fixing the roof while the sun is shining’ but the main focus will be on growth forecasts and the impact these will have on his determination to deliver a Budget surplus.“

Sources:

1. Just Retirement, November 2015: http://www.galeandphillipson.co.uk/wp-content/uploads/2015/11/GP_Infographic_Pensions2015_Website.jpg

2. Research conducted online by ICM research on behalf of Baring Asset Management: http://www.barings.com/ucm/groups/public/documents/marketingmaterials/191909.pdf

Gale and Phillipson is an independent financial planning and investment management firm, dating back to 1905. The group provides comprehensive and focussed financial planning advice, discretionary investment management, advisory investment management, mortgage advice, corporate financial advice and the industry-leading cash management service: Dynamic Cash Management, to UK clients.

This was posted in Bdaily's Members' News section by Gale and Phillipson .