With the Autumn Budget coming on 26 November, the Government is under pressure to allay concerns about the financial choices being made.
Rachel Reeves delivered a speech with the intention of doing that, but the lack of detail may have had the opposite effect.
As fears run high, it is worth understanding what might be coming your way in the Autumn Budget.
Did the Chancellor confirm anything in her speech?
It was not particularly surprising that the speech lacked concrete details, given its proximity to the Autumn Budget itself.
Commentators and other politicians have passed judgement on the failure of the speech to settle fears with its vague allusions causing greater concerns around potential tax hikes.
When pressed on the topic of breaking the Labour Party’s manifesto promises to forgo tax increases, Reeves’s inability to answer effectively has resulted in many seeing an Income Tax increase as inevitable.
If this were to come to pass, it would have wide-reaching consequences for individuals and businesses alike.
The cost of living crisis is already reducing the spending power of many people and businesses are likely to feel the impact on cash flow if they have not already noticed it.
It is possible that a harsh Autumn Budget could see a reduction in spending during the festive period, which is typically a time when many businesses enjoy greater revenue.
All of the concerns are enforced by Reeves’s reluctance to rely on additional borrowing, with many concluding that the economic black hole will be filled by the working people instead.
How the Autumn Budget will achieve its stated goal of tackling the cost of living crisis remains to be seen.
How can I prepare for the Autumn Budget?
Whether concerned about your individual finances or those of a business, it is necessary to start preparing for the worst.
Any glimmer of optimism around taxation is unlikely to persist in the wake of this speech.
As such, you should seek professional support and guidance to reconsider your tax planning to ensure that your bills are not severely impacted by the Autumn Budget.
While tax hikes are extremely likely, it is not yet clear which taxes will rise or by how much, so specific plans may take some time to be designed and implemented.
If possible, it would be wise to consider how an increase to every tax obligation you have would impact you or your business so that you can be prepared for all eventualities.
In the meantime, try to approach the Autumn Budget with as much calm as you can muster and we will help you manage the impact on your finances.
Speak to our team today to prepare effectively for the Autumn Budget.