Inflation Held Steady
Inflation, as measured on the consumer price index (CPI) measure of inflation, was reported unchanged at 3% in February 2026 according to the Office for National Statistics (ONS). The biggest contributor to inflation in February was clothing and footwear (0.6), while falls in alcohol and tobacco (-0.1) was the biggest detractor. Grant Fitzner, chief economist at the ONS explains the context: “After last month’s slowdown, annual inflation was unchanged. This…
Dividend Tax Rate Increase
New tax rules and rates after changes made in the 2025 Autumn Budget are set to take effect from the new tax year (2026/27). From 6th April 2026, dividend tax rates for basic and higher-rate taxpayers will increase by two percentage points, rising to 10.75% and 35.75% respectively. The additional rate will remain unchanged at 39.35%. At the same time, the government has announced further changes affecting savings and property…
Investing Beats Cash
Investing has outperformed cash savings for a third consecutive year according to data from Moneyfacts, despite elevated cash ISA interest rates. The data underpins important considerations about the risk of holding too much cash ahead of the cut to the cash ISA allowance for under-65s – due to be implemented from April 2027. Moneyfacts found the average investment ISA fund saw growth of 11.22% between February 2025 and February 2026.…
Spring Statement
Chancellor, Rachel Reeves, delivered on her promise that the Spring Statement would be a fiscal non-event. It contained no policy changes and very little in the way of good news. The Office for Budget Responsibility (OBR) downgraded the growth forecast for 2026 to 1.1%, down from 1.4% forecast in November 2025. The growth projections now stand at 1.1% in 2026; 1.6% in both 2027 and 2028; and 1.5% in…
Government Reversal
The Government has reversed plans to impose inheritance tax (IHT) on farms worth in excess of £1 million. The level of the Agricultural and Business Property Relief threshold will now be set at £2.5 million for individuals or up £5 million for married couples when it becomes law in April this year. Above this threshold, 50% relief (effective IHT rate of 20%) will still apply to qualifying assets. The Government asserts…
Potential Fraud
The Pensions Ombudsman (TPO), which is an independent pensions complaints arbitration service, has spoken out over potential fraudulent letters. The service has warned that it is aware people have received fake letters purporting to be from the TPO about a “failed investment”. The TPO’s site states: “These letters are not genuine, and the telephone number is not TPO’s. TPO is a free service and would never ask for your bank details or…
Unexpected Inflation
UK inflation increased to 3.4% in the 12 months to December 2025, based on the Consumer Prices Index (CPI) measure from the Office for National Statistics (ONS). The increase in price changes was unexpected, and the first rise in five months, as price rises slowed in the second half of 2025. Among the chief drivers of the surprise uptick were alcohol and tobacco duty increases, rising airfares and food cost increases.…
Organising your Finances for 2026 – Part 2 – Savings
Having savings gives you financial security, acting as safety net for unexpected emergencies. Whether these crop up in the form of a broken boiler, a mechanical issue with your car, or emergency new trainers for your child that lost theirs, having a pot of money you have saved up to meet these costs means you can breathe more easily. Alternatively, savings can be used to achieve long-term goals such…
Organising your Finances for 2026 – Part 1 – Budgeting
The start of a new year is a great time to take a look at your finances and create a plan for you to have a strong financial year. We recommend starting this process by setting yourself a budget. Then you can truly see where your money goes and what changes you could make that will put yourself in the best position. The first step to doing this is…
Main Points from the Autumn Budget
Yesterday, Rachel Reeves announced some new changes to the UK’s fiscal landscape. We will go through the headline changes below: Mansion Tax Any home above the value of £2 million will have an additional council tax (dubbed a ‘mansion tax’) of at least £2,500 a year. If the value of the home is above £5 million then the yearly charge will be upwards of £7,500. It will hit approximately…
