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As the next UK Budget approaches on 26th November, the rumour mill is already turning — and for those approaching or in retirement, there’s plenty to watch.
In this episode of Retire Well with Wealth of Advice, we discuss what the Chancellor might announce, how proposed changes could affect savers, landlords and pensioners, and what it all could mean for your retirement plans.
The Government is facing the highest borrowing levels in five years — almost £100 billion between April and September — and the Chancellor is reportedly looking for around £22 billion in savings to meet her fiscal rule of achieving a budget surplus by 2029–2030.
Rachel Reeves has already suggested that those with the “broadest shoulders” should contribute more, so wealthier households, landlords and investors may well be the focus.
While Labour have promised not to raise taxes on “working people,” there’s speculation about a cut to National Insurance by 2%, offset by a 2% increase in the Basic Rate of Tax.
This move would be designed to raise around £6 billion, but it could hit pensioners, landlords and the self-employed hardest — groups without earned income relief from the NI cut.
Landlords are already facing tighter regulation under the Renters’ Rights Bill, and further tax pressure could come in the form of a Landlord National Insurance charge, raising an estimated £2 billion.
More significantly, there are discussions around Land Taxes or even a Property Wealth Tax, potentially replacing Council Tax with a system based on property value.
Ideas under review include:
Such changes could deter downsizers and further slow the housing market.
Tax thresholds are currently frozen until 2028, but this could be extended to 2030, prolonging the effect of “fiscal drag”.
The Office for Budget Responsibility estimates this could raise £39.3 billion in 2029–2030 — a stealth tax that quietly pulls more people into higher-rate brackets.
Labour’s newly launched Pensions Commission is exploring reforms to address under-saving and improve confidence in the system. Potential measures include:
Meanwhile, the State Pension Triple Lock remains costly, expected to reach £15.5 billion by 2030 and consume almost 60% of GDP by 2050. This will be one of the toughest long-term balancing acts for any government.
There’s talk of reducing the Cash ISA limit to £10,000, down from £20,000, to encourage more investment into UK businesses.
While that could shift some of the £300 billion held in cash ISAs towards the stock market, it might also affect bank deposits and mortgage rates, as institutions adjust their capital requirements.
One potential positive is the removal of the 0.5% Stamp Duty on UK share transactions, which could boost the appeal of domestic investments.
The Budget may include higher VAT on luxury goods and an expansion of VAT coverage overall, alongside increased duties on alcohol, tobacco, gambling and sugary products — framed as health or fairness measures.
A Wealth Tax remains unlikely for now, with most European examples having been introduced and later scrapped.
Ultimately, this Budget looks set to focus on plugging fiscal gaps while trying to promote growth.
For retirees and those approaching retirement, the key message is not to make knee-jerk decisions based on rumour. Whether it’s taking your tax-free cash, selling a property, or adjusting pension contributions, any change should be based on your overall financial plan, not short-term speculation.
“Should I take my tax-free cash or make a decision based on Budget rumours?”
In most cases, it’s best to wait for confirmed details rather than act on speculation.
Once the Budget is announced, a review with your financial adviser can help you decide the most efficient way forward based on actual measures, not media guesswork.
Every Budget brings winners and losers, but the best defence is a clear, flexible financial plan that accounts for change. Whether allowances rise or freeze, the principles of good retirement planning remain the same — diversify, plan ahead, and stay informed.
If you want a better view of what your future could be, we'll have a chat and work out if we make a good fit for you and your financial picture.
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