Post-Budget blues: Just 4% feel more confident about their finances

• Six times as many say the Budget has left them feeling less confident
• Fiscal drag and fresh tax rises add to households’ “death by a thousand cuts”
• Almost one in five are reviewing their savings and investments following the Budget

The Autumn Budget has done little to boost confidence in people’s personal finances, according to new snap polling by Rathbones, one of the UK’s largest wealth and asset management firms.

Just 4% say the Budget has left them feeling more confident about their finances, while six times as many (25%) say they feel less confident.

For most, however, the Budget has failed to significantly shift the dial. 58% say they feel no more or less confident following the announcements, while 13% remain unsure.

The findings come against a backdrop of a growing tax burden on households. Fiscal drag is pulling more income into the tax net, while from 6 April 2027 tax rates on savings income will rise to 24%, 44% and 49% across the UK, with property income tax rates rising to the same levels in England, Wales and Northern Ireland.

Malvee Vaja, Chartered Financial Planner at Rathbones, says: “The Budget delivered fresh blows that will only reinforce the sense among many of the clients we speak to that they are being increasingly boxed in as the tax burden tightens from all directions. Higher tax rates on savings and property income may look like tinkering around the edges in isolation, but taken together they add to a much broader squeeze on people trying to save, invest and build wealth for the future.

“What we hear from clients is that the biggest concern is the direction of travel. One measure on its own might be manageable, but there is a danger of death by a thousand cuts as successive tax changes chip away at wealth and make long-term planning harder.

“The risk is not simply the amount of tax raised today, but the behaviour it encourages tomorrow. Tax policy should be careful not to make saving, investing and building financial independence feel like something that will ultimately be penalised.”

Budget prompts savers to take stock

The Budget also appears to have prompted some people to take a fresh look at their finances. Almost one in five (18%) say they are reviewing their savings and investments, while 8% are reviewing their pension or retirement plans and 6% are looking again at their tax or estate planning.

Meanwhile, 39% say they aren’t planning to take any action, with a further 23% unsure what, if anything, they will do.

Nehal Desai, Senior Investment Director at Rathbones, says: “It is telling that almost one in five of our sample are reviewing their savings and investments. The renewed focus on the taxation of savings income, alongside the U-turn over plans to cut the cash ISA allowance, may well have concentrated minds. Savers increasingly need to consider not only the headline return on their money, but how much of that return they ultimately get to keep.

“That doesn’t mean ripping up your financial plans because of a Budget announcement. Instead, it is a useful opportunity to look under the bonnet and make sure you are making sensible use of the allowances and tax-efficient wrappers available to you, including ISAs and pensions where appropriate.

“Ultimately, tax shouldn’t be the tail that wags the investment dog. Good financial planning starts with your goals, but as the tax burden grows, making sure your money is held as efficiently as possible matters more than ever.”