Budget hits and misses: the UK’s investors react

As the dust settles on the Chancellor’s first Budget, new research from Charles Stanley Direct reveals the hits – and the misses – of the big red book in the eyes of the UK’s DIY investors.

57% of active investors in the UK are positive about the Autumn Budget – but this is driven predominantly by young investors. Four in five (79%) of those aged 18-34 are in favour of Healey’s Budget – falling to just three in ten (29%) of over 55s.

Some policies were more appealing than others to the nation’s investors: 

• The most popular measure by far was the introduction of small business rates relief – which 81% of people support and a mere 3% oppose.
• This was followed by the reversal of the Cash ISA reform, restoring tax-free allowance to £20,000 – 74% of people endorsed this, which stayed largely stable regardless of age
• 71% of people supported the extension of 5p fuel duty cut and freeze until 1 July 2027
• And 70% favoured increased defence spending for 2027

Those with least support included: 

• The adjustment of the Triple Lock from April 2030 – which only 52% of investors supported, and 16% opposed – perhaps unsurprisingly rising to 40% of over 55s
• 58% support the new CGT relief for qualifying business founders – the second least popular major measure
• And 60% support the first-time buyer ISA to replace the LISA

In the middle ground, 62% of people support higher taxation of banks, 63% support the ‘Your First Home’ scheme, 64% the introduction of the National Care Service, and 65% support the higher income tax allowance for those just in receipt of New State Pension. The introduction of the new ‘Starter ISA’ receives 68% support and just 7% opposition.

Of course, not all rumoured measures made the cut to becoming policy. The UK’s investors have a long list of changes they wish were announced:

Rob Morgan, Chief Investment Analyst at Charles Stanley Direct, part of Raymond James, comments: “Direct investors are impacted twofold by the Budget – firstly as consumers, as parents, as employees, as business owners – and secondly as a result of market movements hitting their carefully honed portfolios. As such, they tend to have especially vested interests, and a strong view on the Budget’s successes and failures.

“Clearly, some things hit the mark – and while a few measures appealed more to certain demographics, others were universally admired, including the Cash ISA u-turn. However, there were a lot of policies for which the nation’s investors were pretty apathetic, signalling a missed opportunity to build confidence. Moving forward, consistency is key. Investors and non-investors alike need to be able to trust that the actions they take with their money will not have backfired by the time the next fiscal event rolls around – Spring should bring new growth, not old policy rehashes.”