We Have A New Government, So What Next? Focus Now On Planning For Your Future

Authors: Andrew Griggs and Daniel Grainge

We all know that if there is anything that is certain, it is change. And we’ve all been faced with a lot of that over recent years. Whether you are excited or fearful of the changes about to come, it is important to remain focused on what your personal and business plans are for the future, to keep them on track.

We have been having many ‘what if’ conversations with our clients in recent weeks and our team are here to carry on those discussions now we have greater certainty as the Labour government builds on its policies. As always, we remain by our clients’ sides to guide them through these times of change.

I would firstly say don’t panic or make knee-jerk changes to your plans or finances without thinking through all the consequences. Change may come quickly but it won’t happen overnight. The new government will take time to get to grips with its priorities and there is likely to be a lot of consultation on the key issues as outlined in the election manifesto.

There are, of course, specific pledges which have been made but the reality is there is no timeframe attached to them.

Labour’s plans

Whilst the manifesto provided some details about Labour’s plans for tax, and more widely, (see below) there were some areas where the manifesto was silent – most notably capital gains tax and inheritance tax. We will have to wait for the first Autumn Statement, which is now expected to take place in mid to late-September, for much greater detail and clarity regarding the future tax landscape. In the meantime, there may be an opportunity to benefit from the current tax regime, but taking steps now based on speculation over a future tax regime should be viewed with great care.

The Autumn Statement

We will keep clients and contacts up to date on any confirmed changes and key announcements, and when the date of the Autumn Statement is announced, we will schedule our webinar to provide informed advice and guidance. For now, review and focus on your personal and business goals. Until specific policies have been outlined and the detail announced to go with it, it will be difficult to make an informed decision on whether your plans will remain on course, or if you need to make changes to keep them on track.

Our recommendations

The election result cannot be viewed in isolation. Geopolitics and global economics will continue to shape the UK’s domestic agenda and with it the plans we may have in place.

We recommend that business owners and individuals take regular advice and remain flexible in their approach.

What did Labour say in their manifesto?

• They would provide economic stability with clear rules on tax and spending, including no increases to existing income tax rates, national insurance or VAT.
• Cap corporation tax at its current level of 25%, replace the business rates system and publish a roadmap setting out future business taxes.
• Boost growth by reforming the planning system to allow more housebuilding and infrastructure projects.
• Set up Great British Energy and a National Wealth Fund to invest in clean energy industries, create jobs and cut bills.
• Draw up an industrial strategy focused on the UK’s strengths.
• Protect the state pension triple lock so it rises in line with inflation, wages or 2.5% – whichever is highest.
• Cut NHS waiting times with 40,000 more appointments a week by paying staff more to work weekends and evenings.
• Recruit 6,500 more teachers and introduce free breakfast clubs at every primary school in England.

Read their full manifesto here.