Budget 

What you need to know about the Budget 2018

  • To understand what the economic impacts of the Budget could be.
  • To list the various tax changes implemented in the latest Budget.
  • To understand what the main implications are for mortgages and investment.
CPD
Approx.60min
What you need to know about the Budget 2018

Introduction

Chancellor Philip Hammond declared, at the start of what turned out to be a 72-minute Statement, that this was to be "a Budget for hard working families".

He also told the House of Commons the last time a Budget had been delivered on a Monday was in 1962, when he was just six years old - "and I remember my parents turning to me and saying: Philip, that could be you one day", he added gleefully.

If advisers tuned in hoping to hear more mention of the B word and P word - that's Brexit and pensions - then they will have been sorely disappointed.

Chris Jones, proposition director at Dynamic Planner, observes: "This was a Budget that had less impact on the financial planning world than we had come to expect from previous chancellors.

"Pensions and allowances in general were relatively untouched, some were increased by CPI and some weren’t, with a general feel for round numbers."

But he notes: "This was still a giveaway Budget, with much of that money likely to enter into the economy directly or indirectly, it could be inflationary.

"The finance section of the 'Red Book' even documents the risk of inflation shock to the public finances and therefore the lesson for financial planners from this Budget could well be to make sure that they plan for this in their clients' private finances. Brexit could, of course, be inflationary as transport delays and any tariffs are passed onto the consumer."

This guide will take a closer look at the announcements related to pensions and social care, tax, as well as housing. The features contained in this guide will also look at what the Chancellor revealed in terms of spending on Brexit preparations and what he delivered for investors and savers generally.

This guide is worth an indicative 60 minutes of CPD.

Contributors to the guide: Chris Jones, proposition director at Dynamic Planner; Scott Finnie, product architect at Hymans Robertson; Marcus Brookes, head of multi-manager at Schroders; Claire Trott, head of pensions strategy at St James’s Place; Gary Smith, chartered financial planner at Tilney; Tim Stovold, head of tax at Kingston Smith; Steven Cameron, pensions director at Aegon; Richard Stone, chief executive of The Share Centre; Traceyann Kneen, head of technical at Nucelus; Azad Zangana, senior European economist at Schroders; Kevin Roberts, director of Legal & General Mortgage Club; Silvia Dall’Angelo, senior economist at Hermes Investment Management; Adrian Lowcock, head of personal investing at Willis Owen; Rachel Vahey, product technical manager at Nucleus; Alex Moore, head of collectives research at Rathbones; Joest Bunse, associate director at S&P Global Ratings; Matthew Yeates, investment manager at Seven Investment Management; Edward Park, investment director at Brooks Macdonald; Ben Barringer, equity analyst at Quilter Cheviot; Steve Webb, director of policy at Royal London; James Jones-Tinsley, self-invested pensions technical specialist at Barnett Waddingham; Adrian Boulding, director of policy at Now Pensions; Daniel Hegarty, chief executive and founder of Habito; Gemma Harle, managing director of Intrinsic mortgage network; Craig McKinlay, new business director of Kensington Mortgages; Mike Cooper, partner, owner managed business group at Moore Stephens; Richard Pike, marketing and sales director at Phoebus Software; Simon Bath, chief executive of When You Move; Ian Dyall, head of estate planning at Tilney; Helen Morrissey, specialist in long-term savings at Royal London; Will Fraser-Allen, deputy managing partner of Albion Capital; David Zahn, head of European fixed income at Franklin Templeton; Lilla Dilliway, director of BlueWing Financials; Sam Mitchell, chief executive of HouseSimple; Brooks Macdonald; Office for Budget Responsibility; www.gov.uk.

Brought to you by FTAdviser's features team: Ellie Duncan is features editor of FTAdviser and Financial Adviser; Saloni Sardana and Victoria Ticha are features writers at FTAdviser and Financial Adviser. 

In this guide

CPD
Approx.60min
  1. According to Mr Stone, the Chancellor was what on savings and investments in his Budget Statement?

  2. Mr Cameron says the key aim of pension schemes must remain what?

  3. Respite for pension tax relief is likely to be what, according to Mr Webb?

  4. Tilney's calculations show a significant increase in the National Insurance band effectively negates what percentage of the income tax giveaway?

  5. Is the following statement from Mr Park true or false? "The closer we get to the secession date without a deal, the more volatility we expect to see."

  6. Ms Harle says the Help to Buy equity loan scheme has had mixed reviews, with some first-time buyers described as being what?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • To understand what the economic impacts of the Budget could be.
  • To list the various tax changes implemented in the latest Budget.
  • To understand what the main implications are for mortgages and investment.

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