UK financial advisers approached this year’s Budget braced for heavy impact on clients and their businesses. Instead, the outcome was judged to be marginally softer than feared, but still deeply disappointing in its lack of substantive reform, a new survey from the lang cat shows.
Before the Chancellor’s statement, 92% of advisers expected the Budget to be bad news for their clients, and just 27% anticipated a positive impact on their firm. After the announcement, sentiment improved slightly - 76% still felt it would adversely affect clients, while 41% believe their firm might benefit, with more people needing help to navigate the changes.
Despite this shift, advisers overwhelmingly described the Budget as yet another round of 'fiddling at the edges'.
The clearest message from the profession is a desire for meaningful reform. Advisers said frequent, piecemeal policy changes create uncertainty and make long-term planning harder for clients. The system is seen as too complex, changeable and politicised. Common suggestions included simplification of the tax system especially around income tax and National Insurance and scrapping manifesto handcuffs that prevent rational tax policy.
One adviser said: "With the fiscal tightening very much loaded towards the end of the term, this leaves a lot of uncertainty for changes to happen between now and then."
Salary sacrifice changes will hit ordinary savers
The most unpopular measure by a considerable margin was the new £2,000 cap on salary sacrifice, due to take effect in 2029. Advisers argued the limit is too low, will add administrative complexity and will disproportionately affect ordinary savers rather than the wealthiest. Many warned it risks undermining pension planning and overall savings stability.
A striking number of respondents expressed their preference for straight income tax rises over multiple small adjustments. Some suggested a 2p increase in income tax, higher personal allowances or new tax bands.
As one adviser put it: “If the government is faced with a significant deficit, it would be prudent for them to make bold decisions to increase direct taxes, instead of implementing numerous small changes to various aspects of the Budget."
Advisers also raised strong concerns about new ISA rules, lower cash ISA limits and what they see as added complexity across the ISA landscape.
Mike Barrett, consulting director at the lang cat, said: “Advisers went into Budget week expecting a hammer blow for their clients. What they got instead was something softer but ultimately still disappointing. The message from the profession is crystal clear - stop tinkering. These small, complicated adjustments don’t help advisers plan, don’t help clients save, and don’t address the long-term issues the country needs to tackle including people’s financial resilience.
“If the government wants to build trust and stability, it needs to focus on simplicity and transparency, not add yet more moving parts to an already complex system.”
