Autumn Budget sparks concern among financial planning clients

The survey conducted by Active Chartered Financial Planners found that 48 per cent of clients held a negative view of the Chancellor’s statement.

The feedback reinforces concerns the firm shared with the Chancellor ahead of the Budget.

Just two per cent described the Budget as positive, with many clients frustrated by what they saw as a lack of direction in economic policy.

Karl Pemberton, managing director at Active Chartered Financial Planners, said: “Ahead of the Budget, we warned that confidence among savers and investors was already under strain.

“This survey shows that the Budget has done little to address those concerns.

“People are particularly uneasy about the direction of travel on taxation and the lack of clear incentives for long-term saving and growth.

“While many individuals feel relatively stable in their own finances, confidence in economic policy remains weak.”

Concerns were highest among savers and investors.

Sixty-one per cent of respondents said higher taxes on savings and dividends would affect them most, while 14 per cent pointed to the reduced cash ISA limit.

Many worried about the knock-on effects for investment returns, rental income and overall business confidence.

Despite the negative response to the Budget, personal financial confidence has largely held steady.

Sixty-six per cent of respondents reported no change in their financial outlook compared to the previous quarter, while 17 per cent felt more confident and another 17 per cent felt less confident.

The survey also found that some clients separated their views on government decisions from their long-term financial prospects.

Active Chartered Financial Planners wrote to the Chancellor before the Autumn Budget, warning that confidence among savers, investors and small business owners was already fragile and that further pressure on saving and investment risked undermining it further.