This week’s Budget from chancellor Rachel Reeves has sparked a great deal of discussion across the industry, not because of one headline reform, but because of the cumulative impact of many smaller — yet meaningful — policy changes. The key question for advisers and their clients is what these measures will actually mean in practice, particularly around pensions and ISAs.
At Blacktower, we’ve been reviewing the proposals closely, and the feedback across the industry has been strikingly aligned.
The cap on National Insurance relief for salary sacrifice pensions is one of the most significant adjustments. And while it may appear a technical tweak, its impact is likely to be felt most by those who genuinely need to save more, not less.
The risk is that employers begin to question the value of offering salary sacrifice arrangements at all. Alternatively, clients may find themselves worrying about unexpected tax charges or NI repayments — and that uncertainty alone can be enough to deter them from making sound, long-term pension decisions.
Several industry peers have voiced similar concerns. Some measures seem to work against the government’s stated aim of encouraging greater saving. On one hand, ministers are calling for improved long-term financial resilience; on the other, they are introducing policies that may inadvertently discourage exactly that behaviour.
The cut to the annual cash ISA allowance is another example. While intended to nudge the public toward investing, the consensus — which we share at Blacktower — is that behaviour is unlikely to shift meaningfully without deeper, sustained financial education. Cash has its place in any short-term buffer, but long-term goals require a different approach, and clients need clarity and confidence to make that shift.
As one commentator rightly noted this week: we don’t just need new rules — we need better education around long-term saving and investing. And I wholeheartedly agree. Regulation can guide, but it’s understanding that drives real change.
Looking ahead, the government is placing considerable hope in the FCA’s upcoming targeted support framework, designed to help more people access appropriate investment guidance. Whether it moves the dial remains to be seen, but anything that helps consumers navigate an increasingly complex environment is welcome.
For advisers across the Blacktower Group and beyond, the message is clear: clients will need reassurance, straight answers, and proactive guidance more than ever. And as always, we stand ready to support them through another evolving chapter in the UK’s financial landscape.
John Westwood is Group Chairman at Blacktower Financial Management
