The result of the 2024 General Election saw Keir Starmer's Labour Party win a majority for the first time since 2010. In this months hot topics, we take a look at some of their promises and how they might impact the UK financially.
There were no major announcements regarding personal finance or changes to taxes. So we will have to wait until the Autumn Budget (predicted to take place mid-September/October) to find out any details of what the government plans for individuals, businesses, and investors. Economists are unanimous that the current tax and spending plans are sufficient to fund Labour's manifesto pledges.
Legal Requirement for the OBR to assess government fiscal events - won't affect fiscal policy; it's an effort to keep financial markets on the side.
Pension Scheme bill: This bill will widen the focus from just cost to value, which should lead to improved outcomes for customers. The key to this bill is the proposal to consolidate defined contributions into small pots. This can simplify people's pensions, given that we now live in an economy where people will have multiple jobs during their careers and, therefore, various pensions. In 2022, there were estimated to be £26.6 million of lost pension pots. There are a few ideas about how this consolidation will work, but we should get more specific details in the coming months.
VAT on Private Schools – school fees have increased ahead of inflation for the last 25 years, but now with an additional 20% increase, families will need adjust their budgets to accommodate this.
