Budget 2025: A Deepening Black Hole
The latest UK economic outlook, published by the National Institute for Economic and Social Research, has said that the Chancellor will miss her self-imposed Fiscal Rules by over £40bn - double what some other organisations have suggested recently.
The Institute goes on to say that it seems increasingly hard to see how the Government will:
Meet the fiscal targets it set last October; and
Stick to its spending plans, announced in June 2025; and
Avoid tax increases on ‘working people’ (whoever they may be), as promised in its manifesto of just over a year ago.
To be exact, the Institute is forecasting a current deficit of £41.2bn for 2029/30 and says, with a degree of understatement, “Substantial adjustments in the Autumn Budget will be needed if the Chancellor is to remain compliant with her fiscal rules.”
In the general media, the headlines have highlighted a shortfall of £50bn. This takes the Institutes £41.2bn projected current budget deficit and added to that number Rachel Reeves seemingly fixed £9.9bn ‘headroom’. Perhaps the Chancellor needs to create more headroom to avoid having to scramble to meet her target at every single fiscal event!
What does all this mean for later life financial planning? Over the next few months in the lead up to the Budget on 26th November we will be providing insightful commentary and advice for those in later life. This can be best accessed reviewing our regular blog articles and commentary on the Harold Stephens website and social media channels. Search for ‘Harold Stephens IFA’ on You Tube and subscribe to the channel to get the very latest videos direct from Richard Higgs, later life financial planning specialist.
Finally, register and reserve your place at one of our 2 post-budget Later Life Financial Planning live events to be held on Wednesday December 3rd 2025 by emailing office@haroldstephens.co.uk.