Budget 2025: The Manifesto Stands!

With possible tax rises in the forthcoming Budget, this Sunday the Prime Minister used a new form of wording – “The Manifesto Stands” as a way of answering questions on this. When specifically asked, at least 5 times, in a BBC interview whether income tax or VAT would be increased, the Prime Minister responded with “The Manifesto Stands”! As the interviewer, Laura Kuenssberg pointed out, as well as probably everyone watching at home, this new wording avoided directly answering the question.

Could a manifesto that stands today, be changed by 26th November if there is a Budget justification behind the decision? There is already some considerable debate over whether last year’s National Insurance increase was within the manifesto’s boundaries – at the very least it indirectly adversely affected ‘working people’.

One possibility on the VAT front is to reduce the registration threshold from the current £90,000 level set in April 2024. Whether this would represent an increase to taxes on ‘working people’ (or more pertinently those in post-retirement or later life) is debateable. It could certainly produce increased prices in those business areas where the current structure is often designed to stay out of VAT, like hairdressing and other similar personal services.

The next eight weeks leading to the Budget are likely to see many more discussions – but not much clarity – about the meaning of manifesto commitments. Meanwhile, the consensus figure for the Chancellor’s black hole is heading towards £30bn, a figure now being quoted by both the Financial Times and Bloomberg.  

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.