A key budget for the country
The Autumn Budget has never been so important in years gone by. With the United Kingdom in the grips of high inflation and fears of a recession, the budget is key to setting out fiscal certainty into next year. The chancellor of the exchequer Jeremy Hunt had an incredibly tough job on his hands as the country’s economic state and outlook are bleak. What we are going to do is dissect his announcements and see what they mean for you, the British public.
Often budgets can be confusing and come with a lot of different implementation dates that make it hard to figure out what is actually happening now. There is plenty to look at though in this autumn budget. Personal tax freezes, cost of living support, pensions etc. Let’s take a dive in and see how it’s going to effect you. How it may change your mortgage or pension plans for retirement.
Cost of living support in the autumn budget
The chancellor Jeremy Hunt has stated that there will be support for households and businesses going into next year. The energy price guarantee will be kept for a further 12 months capping at £3,000 per household. There will also be one off payments of £900 to households on benefits, £300 to pensioner households and £150 for any person on disability benefit. Social housing rents will also cap out at seven percent to avoid big rent hikes next year.
On top of this the national living wage is also rising quite considerably by 9.7% to £10.42 per hour which puts it more in line with inflation. Although in reality this is only a figure some employers look to meet and is no guarantee of higher wages, it at least sets the bar for employers.
Pensions & benefits to increase in line with inflation
Inflation, inflation, inflation. It’s all we’ve really heard about in the financial news for the last year. It’s almost getting tiring, isn’t it? The good news for the most vulnerable in the UK is that they definitely aren’t being forgotten. On the base of things benefits will rise in line with September’s inflation rate which is 10.1%. This along with pensions triple lock to be kept and the nations retired community funded with their increases also going in line with inflation is doing a lot to keep the most vulnerable among us protected.
With these commitments, there is a general feeling that the Tories have shown compassion for the most vulnerable. Only time will tell though if this is enough to ride the current economic storm. It’s a tough one to call this early but the good signs are that the conservatives are seemingly committed to supporting the country.
Where does the autumn budget leave you?
There’s quite a lot to digest in this key budget for the UK economy. The outlook can seem all doom and gloom when you pay attention to the mainstream media but it is often best to focus on your own personal finances rather than go down that path. Looking at a picture too
When it comes to personal financial management, it can be tough. There are plenty of budgeting tips that we have gone over and ways to deal with the cost of living increasing. Sometimes though it can help to speak with an expert directly to assuage your concerns. Contact us today and we’d be happy to talk over your finances and see if we can help in any way.
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