Finance expert calls to ‘stay calm’ as speculation over budget grows

A leading West Midlands financial expert is advising people to ‘stay calm but make sensible plans where possible’ as speculation about the content of the upcoming Autumn Budget continues. 

Mike Jordan (pictured), whose firm Jordan Financial Management has been helping West Midlanders for more than 25 years, warns that emotional decision making can harm your finances however sensible planning is also very important.'

Mike said: “While it can feel tempting to respond to attention-grabbing headlines, it might lead to decisions that aren’t right for you, or that don’t align with your long-term financial plan.

“Emotional decision-making can be risky in the face of investment market volatility – it’s crucial to stay calm.

“However, it is also sensible to meet and speak with your financial adviser, discuss some of the rumoured changes, think through the possible impacts and see what steps you can take.

“You then need to assess what might be the impact of taking preventative steps or immediate action then weigh up what the negative impact to you might be, if the rumoured changes don’t go ahead - can you then live with these?

“Such costs can be looked at a little like “insurance”. You’re perhaps sacrificing an amount of money for the peace of mind and to prevent something that might otherwise be catastrophic. This is all best discussed however with a professional adviser to be sure all consequences of any action are fully considered’.

Mike’s advice comes after a similar panic last year. Ahead of the 2024 Autumn Budget, news sources suggested the pension tax-free allowance would be scrapped, leading to some people taking a lump sum out of their pension against their financial plan.

The announcement never materialised – and many people were unable to cancel their withdrawal. Understanding the full impact of such decisions - or not taking action - is important before going ahead’.

To stay calm in the lead-up to the Budget, Mike recommends doing whatever you can to tune out the noise. 

He said: “Make a note of your concerns and how you think they will impact your future financial situation and then get in contact as soon as possible with your advisers and talk these concerns through - don’t leave things until the last moment as you then might not have time to act.

“Having a clear written plan and a professional adviser who you can trust reduces stress and makes you less likely to make those knee-jerk decisions.

“Also, just be mindful of where rumours and updates are coming from.”

Alongside fact-checking articles, Mike suggests taking a measured consideration of what changes could mean for your personal financial plan. 

Mike said: “Take a moment to think calmly about what changes could affect you. You might find that an announcement won’t affect your long-term plan at all.

“For example, headlines have recently been suggesting that changes to Inheritance Tax (IHT) mean the average bill will increase by 10 per cent. However, your estate might not even be liable for IHT, or your existing estate plan could mitigate the effects.” 

This is all part of having a relationship with a trusted financial planner who can help you get to the bottom of which changes will and won’t affect you.

Mike said: “Sometimes Budget changes come into effect immediately, and others give you time to think. Back in 2022, it was announced that the Capital Gains Tax annual exempt amount would be reduced from £12,300 to £3,000 – a change which took two years to be gradually implemented.

“However, if you think rumoured changes might impact you in an adverse way, don’t wait until after the Budget, speak to your financial planner now and work out what can or can’t be done now without any, or minimal negative impact and disruption.

“Remember your financial planner is here to help you understand what speculated and confirmed changes could mean for you and to help you act now where possible.”