Balance and confidence may not be forthcoming, Time to get talking!
01 October 2026I have little doubt that over the next few weeks we will enter the annual malaise of Budget speculation that the media and others bring about as each announcement draws closer. This year’s Budget is set for 28 October, approximately a month earlier than last year.
This will be the first Budget for the new Chancellor, John Healey MP, and there are many factors working against him to give him little headroom to manoeuvre. UK borrowing levels are high, and UK borrowing costs are high, meaning that more is being spent by the government to service this debt before they can look at the areas they want to address as part of their various pledges.
The speculative points are where savings (if at all) are going to be made, and where taxes may inevitably rise to ‘balance the books’. At the same time, there is a need to maintain, indeed some might argue restore, confidence that ‘UK Plc’ as a place to live, work and do business is on track and attractive on the world stage.
Closer to home, many households are feeling the real effects of inflation, with rising fuel costs, food prices, and for borrowers higher rates to contend with. Each brings its own individual pinch to the budget of many homes. For those with savings, higher rates can of course mean greater income, but with only £1,000 gross of savings allowance for a basic rate taxpayer, a greater tax take may be due. Of course, using annual allowances, such as the ISA allowance, can help in part to control this position.
This raises the question about a household’s confidence in its own overall budget for the year ahead. Knowing that you might be paying a little more tax in some form or another (not guaranteed but there are unlikely to be many giveaways at the end of October), are you ready and have you discussed this with the household?
Planning ahead and being ready is key to having confidence that all the ‘financials’ are covered. Easy to say (or in this case write). My suggestion is simple and to do one thing. Start talking as a household now for your own personal budget looking forward to ensure that all is set as you would anticipate now, at the end of the year, at Easter and then in the summer of 2027.
There are some good free budget planners available (MoneyHelper as an example here: https://www.moneyhelper.org.uk/en/everyday-money/budgeting/budget-planner) and if you are uncertain of where you stand, seek advice from a suitably qualified financial planner.
The cost of living crisis is here to stay for a good few months ahead, both in the UK and abroad, and taking these financial pressures into account now may make a big difference to your own financial confidence.
No individual advice is included within this blog.
Keith Churchouse FPFS
Director
CFP Chartered FCSI
Chartered Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899
