Reeves’ Spending Review 2025

The Spending Review didn’t include major Tax changes, but the real detail may come in the Autumn Budget. With limited room for manoeuvre and growing spending pressures, the likelihood of future Tax rises has increased. While there’s no official move yet, Pensions and ISAs are both under review as we’ve mentioned before. This could mean changes to Tax relief, ISA rules, or allowances down the line.

While nothing is changing overnight, the direction of travel suggests increased scrutiny of income, benefits, and savings. Tax Planning and Retirement strategies may need to adjust depending on what’s announced later this year.

If you’re wondering how this could affect your own Financial Plan, we’re here to help. Whether it’s reviewing your Pension, understanding allowances, or planning ahead for Tax changes, now’s a good time to check in and stay prepared.

Why more people are thinking about charitable giving in their Wills

In short, the IHT thresholds are frozen until 2030, and from 2027, Pension pots could be hit with IHT too. That means more Estates will be liable for Tax, and naturally, more clients are seeking Advice on how to plan ahead. In fact, we have already seen a rise in requests for Estate and Tax Planning support.

One increasingly popular and simple solution? Leaving a gift to charity in your Will. Charitable donations are exempt from IHT, and if you leave 10% or more of your Estate to charity, your Estate could benefit from a reduced Tax rate of 36%. So not only can you support a cause close to your heart, but you could also reduce the Tax burden on your Estate.

If it’s already something you were considering and you have a cause that you feel connected to, then it can be a smart way to balance personal values with Financial Planning.

So, now might be the perfect time to revisit your plans, as this is only one tool available to those wanting to put in place effective Estate Planning.

Will Interest Rates drop again this summer?

There’s been another pause from the Bank of England holding Interest Rates steady at 4.25%, but there’s growing hope that a cut could come as early as August.

While inflation is still sitting above the Bank’s 2% target (currently at 3.4%), there are signs the pressure is easing. Wage growth is slowing, unemployment is edging up, and Businesses are pausing on hiring or giving out pay rises. All of this points to a softening economy, and that’s exactly what the Bank is watching.

Governor Andrew Bailey hinted that Interest Rates are on a “gradual downward path”, though he warned that global instability (like tensions in the Middle East and rising oil prices) could change the outlook.

What does this mean for you?

If you’ve got a Mortgage, lower rates may be on the horizon, which is great news if you’re due to re-Mortgage soon. But if you’re a saver, now might be a good time to review your accounts before rates dip again. Many high street banks still offer pretty poor returns, and better deals might not last long.

Digital Wills aren’t always as simple – or safe – as they seem

With promises of a quick, easy, and cheap solution (some under £20 and done in 15 minutes) it’s easy to see the appeal. But when something’s this important, is “quick and cheap” really the right approach?

The truth is that many people don’t realise the risks involved with digital or DIY Wills until it’s too late. A Will is a legal document that needs to be properly written, signed, and stored. If anything goes wrong, say it’s not signed correctly, uses vague wording, or gets lost, there’s a real risk your wishes won’t be carried out. Worse still, it might not be valid at all.

With today’s more complex family setups, such as second marriages, blended families, or cohabiting partners, it’s easy to see how a simple online form might not cover all bases. And many online providers aren’t regulated or clear about the lack of Legal Advice, which can leave your family facing costly disputes later.

The bottom line? While digital Wills might seem convenient, they’re not always reliable, especially if your situation is anything but straightforward. That’s why working with a qualified professional who can offer personalised Advice and ensure everything is done correctly is still the gold standard.

It’s your Legacy, after all. Getting it right the first time can make all the difference for those you leave behind.

Want to Learn More?

Our recent Wills & Estate Planning Briefing was one of our best-attended events yet—and for good reason. These are topics that touch every family. We were delighted to see so many thoughtful questions, lightbulb moments, and meaningful conversations throughout the session.

If you missed it, don’t worry—you can still watch the recording here and download our Estate Planning brochure. And if you’d like a personal review or need to get your Will in place, our expert team is just a call or email away.

A bad day in the office…

You may have seen headlines about UK inflation being 3.5% in April – well, it turns out that wasn’t quite right. The Office for National Statistics (ONS) has now admitted the figure should have been 3.4%, due to an error in road Tax data supplied by the Department for Transport.

It might not sound like a big difference, but in the world of economics and Financial Planning, even a 0.1% adjustment can make a difference, especially when the Bank of England is trying to decide whether to cut interest rates again later this year.

The ONS won’t be correcting the official figure (they only revise stats in exceptional circumstances), but they have said they’ll be tightening up how they check data coming in from other departments. It’s a reminder that even official statistics aren’t always perfect, and it’s causing some concern about how reliable key economic data really is right now.

Top three cash ISAs

Please check the terms and conditions before opening any account. If in doubt, consult with your Financial Adviser directly, as the above is for your information only.

Source: Moneysavingexpert.com 01/07/2025