Extraordinary times in the run up to the Budget. After the Chancellor Rachel Reeves as good as confirmed there would be income tax rises a couple of weeks ago, Treasury sources, which appear to be reliable, have now ruled out that rise.
This all occurred on the evening of last Thursday. By the morning, so last Friday, the Treasury was briefing that the decision or the U-turn on the manifesto breach came about because the Treasury had suggested that there was better news on the public finances from the Office for Budget Responsibility. The Financial Times reported that morning.
The bond markets did not, however, take kindly to all this change and disruption as the Independent reported.
The Telegraph quotes City sources including Aberdeen questioning the Chancellor’s credibility with bond markets.
Blloomberg columnist Marcus Ashworth suggested that the Income Tax U-turn was putting UK in a death spiral.
On Sky, Beth Right askes ‘what the hell just happened?'
More recently the Guardian suggests that Reeves will fill part of the gap with a freeze on the lower threshold.
It is hardly surprising that adviser trade body Pimfa has called out this behaviour for unsettling clients as Citywire New Model Adviser reports.
In Professional Adviser, there is criticism of another possible change from the Treasury – a cap on the amount that can benefit from salary sacrifice.
In other news and views, Tony Wilkinson investment director, quantitative solutions, at Collidr discusses how AI is changing investment content in Money Marketing.
He writes: “As AI technology evolves, its role in investment content will only expand. The firms that thrive will be those that implement it thoughtfully — prioritising accuracy over speed, sources over volume and human oversight over full automation.”
Feels about right.
Amir Rocha Lima, managing director Strategic Wealth Partners, joins Financial Planning Standards Board. He suggests that standards and perceptions of financial planning are still “inconsistent” across the globe, according to Amyr Rocha Lima, managing director of Strategic Wealth Partners.
