Market and industry response
Market participants have given a muted reaction to Chancellor John Healey’s maiden Budget, with analysts noting the fiscal plans rely on tight spending controls. Tony Dalwood, chief executive of Gresham House, criticised frequent tax adjustments and the temporary doubling of the Bank Corporation Tax Surcharge from 3% to 6%, warning that frequent regulatory and tax interference harms investor confidence. Conversely, Sue Noffke, manager of the Schroder Income Growth fund, described the outcome for UK equities as fairly neutral, pointing out that spending commitments in areas like infrastructure and energy could benefit UK-listed companies.
Wealth and savings impacts
Wealth experts welcomed the reversal of planned cuts to the tax-free cash Isa allowance and the introduction of a 10% lifetime founders' relief on capital gains tax for entrepreneurs. However, Jason Hollands of Evelyn Partners highlighted that the planned increase in tax on savings income from next April has doubled to four percentage points, signalling a tougher tax landscape ahead for savers.