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Spring Statement 2025

by | Mar 27, 2025 | News | 0 comments

The Chancellor’s Spring Statement 2025 yesterday outlined a range of economic measures that will have direct implications for investors, pensions, and savings.

Key points that could affect your portfolio and financial planning:

Economic Growth & Market Outlook
The UK economy is expected to grow modestly over the next five years, with household incomes rising by just 0.5% annually. While this presents challenges, opportunities remain in resilient sectors such as infrastructure, technology, and global equities. We continue to monitor market conditions to optimise your investments.

Interest Rates
The UK’s Office for Budget Responsibility (OBR) indicated that interest rates are expected to remain elevated for a prolonged period.Specifically, the OBR forecasts that the average interest rate on mortgages will increase from 3.7% in 2024 to 4.7% in 2028 and remain at that level in 2029.This projection is higher than their previous estimate of 4.5% made in October. This means UK plc borrowing costs are now expected to be higher and for personal finances this may lead to slightly higher mortgage costs if remortaging.

Taxation & Compliance Measures
The government is targeting tax evasion and avoidance to raise an additional £1 billion, with stricter enforcement and penalties. 15 days overdue a penalty of 3% of the outstanding. 30 days overdue an additional 3% and beyond 30 days, a further penalty accrues at a rate of 10% per annum of the outstanding. This reinforces the importance of tax-efficient investment strategies, particularly in ISAs, SIPPs, and pensions, to shield your wealth from unnecessary tax liabilities.

ISAs & Savings
There are planned reforms to ISAs, aiming to encourage investment in equities rather than cash savings. This aligns with our long-term investment approach, and we will keep you informed on how to best leverage these changes to enhance your returns.

Housing & Infrastructure Investment
A commitment to building 1.3 million new homes may impact property markets, with the potential for downward pressure on prices. For investors in property-related assets, this could signal a shift in strategy, favouring diversified real estate investment trusts (REITs) and infrastructure funds.

Pensions & Welfare Changes
While the universal credit standard allowance will rise, changes to the health element may affect financial security for some individuals. For those nearing retirement, ensuring your pension is structured for maximum growth and tax efficiency remains paramount.

If you would like to discuss your investments in light of the Budget and/or to discuss setting up an account please contact support@capitalfinancialmarkets.co.uk.

Emma Tuckett

Investment Manager

Well-respected Investment Manager, Emma Tuckett, has joined CFM following a successful career at Killik & Co.

After nearly a decade working in Trading and Investments, Emma has worked with clients from a wide range of backgrounds and has extensive experience in Advisory and Discretionary Investment Management, with a particular focus on ESG investing and helping clients align their investments with their long-term objectives and values.

emma.tuckett@capitalfinancialmarkets.co.uk

Joanne Hill

Compliance Manager

Joanne has joined Capital Financial Markets as Compliance Manager having worked in the Independent Financial Advice sector for over 30 years. 

Joanne holds a degree in Business and Finance, the CII Diploma in Financial Planning and has a wealth of experience and knowledge within Financial Services.  Joanne’s role is to protect both Capital Financial Markets and our Clients.

joanne.hill@capitalfinancialmarkets.co.uk

Saffron Heasley

Client Administrator

We are delighted that Saffron joined the CFM team as our business apprentice capably fulfilling the Client Administrator role. Saffron brings enthusiasm, reliability and a strong willingness to learn. In this role, Saffron supports the smooth day-to-day running of the business, providing essential administrative support across the team helping to ensure processes run efficiently and compliantly.

With a keen eye for detail and a proactive approach, Saffron is developing a solid foundation while working closely with colleagues across the organisation. Saffron is a valued member of the team and plays an important role in supporting CFM’s operations as we continue to grow.

saffron.heasley@capitalfinancialmarkets.co.uk

Paula Mitchell

Head of Operations & People

Having worked with us as a consultant for over eight years Paula brings that familiarity to the organisation and has joined the CFM team as Head of Operations & People.

A seasoned finance and HR professional with a masters in HR Management, Paula combines analytical strength with a people-centred approach to drive operational excellence. Paula will be leading the team and supporting Paul with the operations and people strategy ensuring sustainable growth and the smooth running of the business.

paula.mitchell@capitalfinancialmarkets.co.uk