Welcome to your Danbro Financial Planning September newsletter. 

With the autumn budget just around the corner, September is the perfect time to reflect on the recent shifts across the financial landscape. In this edition, we’ll explore the key developments and what they could mean for the months ahead.

So, without further ado, let's dive into the headlines.

In the News

The Autumn Budget has been officially announced. The Chancellor, Rachel Reeves will set out plans for the economy when she delivers the Budget on 26 November.

She faces pressure to either raise taxes or cut spending to meet her own fiscal rules — namely, stopping borrowing for day-to-day spending and getting national debt to fall as a share of income by the end of this parliament.

Labour has pledged not to increase income tax, National Insurance or VAT for working people, so any tax rises are likely to come from other areas. Speculation includes:

Income tax thresholds: Extending the current freeze, sometimes called a "stealth tax", so more people are drawn into higher tax bands.
Property taxes: Possible reforms to stamp duty, council tax, or even taxing gains on main-home sales.
Other levies: Unions have called for higher taxes on online gaming firms and banks.

Reeves may also look at encouraging personal investment through ISA or pension tweaks, though no major changes have been confirmed.

The backdrop is a slowing UK economy, with growth near flat and inflation still at 3.8%, above the 2% target.

As you may have seen from a recent email from us, the Bank of England’s August Monetary Policy Report was released.
The Bank of England has reduced the base interest rate to 4.0%, from 4.25%. This is the fifth small cut since last year, and it’s part of a gradual move to ease borrowing costs and support the economy.
They emphasise that any further reductions will depend on how the economy evolves in the months ahead. The Bank will continue to monitor key indicators closely before deciding how far and how quickly to lower rates further, aiming to support growth without creating fresh financial risks.

To read more on the report and how Danbro Financial Planning can assist you, check out our blog.

Here's a Message from Our Director - Liam Winstanley

“As I write this, our excellent summer already seems a distant memory as the rain and wind are once again lashing against the office windows!  What isn’t a distant memory for many of us is the last budget, which saw plenty of speculation beforehand, much of which did not come to pass. I do feel that, ahead of the upcoming November budget, we are treading the same road again.  There is, sadly, a lot of speculation once again about what the Chancellor may do to increase tax revenues. It is clear to me that we are entering a new normal when it comes to taxes, in that whatever is done with taxes, it never seems to be enough to balance the books! As a result, we are definitely seeing more queries around tax mitigation, particularly when it comes to inheritance tax, capital gains tax and income tax.

Any sensible financial plan should aim to be tax efficient and make use of available allowances and exemptions where appropriate, as well as considering your own “attitude to tax” and to what degree you “need” to reduce your taxes.  So, if you do need to review your plans and check whether you are being tax efficient with your savings, investments, pensions and life insurance, please do get in touch and we will be happy to help where we can!”

Featured Article

For this month’s featured article, we're highlighting the key tax changes Chancellor Rachel Reeves may consider in the run-up to the 26th November budget.

Economists warn she could breach her own borrowing rules unless the Treasury finds billions in extra revenue. With rises in income tax, National Insurance and VAT ruled out, attention is turning to property-related taxes.

• National Insurance for landlords: A Resolution Foundation proposal would require all landlords to pay National Insurance on rental income, potentially raising about £3 billion a year if phased in.

• Capital gains tax on expensive homes: The government is reportedly weighing up ending the main-home exemption for high-value properties, which could bring in significant revenue but contradict Labour's pre-election pledges and risk slowing sales.

• Stamp duty reform: Options include scrapping the upfront tax on property purchases, which currently raises about £11.6 billion annually.

• National property tax: A replacement for stamp duty could be an annual levy of around 0.54% on the portion of a home's value above £500,000.

• Council tax overhaul: Ministers may also revisit council tax, which has long been criticised for relying on outdated property valuations, although redistributing funds would be politically sensitive.

The Treasury has not confirmed any of these ideas and says it remains committed to keeping taxes for working people as low as possible.

Pension News

It's Pension Awareness Week; each year, this week shines a spotlight on the importance of saving for retirement. In 2025, the campaign is more relevant than ever, with millions of workers in the UK relying on pensions to secure their financial future.

Whether you're just starting your career or approaching retirement, reviewing your pension regularly can help ensure you're on track to meet your goals. Small adjustments to contributions, investment choices, or retirement planning strategies now can make a significant difference in the long term.

The government has warned that people retiring in 2050 could be worse off than today's pensioners unless action is taken to boost retirement savings. To tackle this, the Department for Work and Pensions (DWP) is reviving the Turner Pension Commission, which originally reported in 2006, and commissioning a review of the state pension age.

The relaunched Commission, reporting in 2027, will focus on private sector pensions and explore barriers preventing people from saving. It will bring together trade unions, employers, and independent experts to build a national consensus on future retirement savings strategy.

To read more about planning for your retirement, check out our recent blog.

We hope you enjoyed reading this newsletter. If you have any questions about the points raised, please don’t hesitate to get in touch. We look forward to continuing to work with you. 

Please note, The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Levels, bases of and reliefs from taxation may be subject to change, and their value depends on the individual circumstances of the investor.

The content of this newsletter is for your general information purposes only and does not constitute advice. It is not an offer to purchase or sell any particular asset and it does not contain all of the information which an investor may require in order to make an investment decision. Please obtain professional advice before entering into any new arrangement. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.

Published September