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What’s in the 2024 Spring Budget?


Against the backdrop of changing economic conditions and a forthcoming General Election, Chancellor Jeremy Hunt announced a series of measures in the 2024 Spring Budget. Here’s a rundown of some of the key announcements.

 

INFLATION DOWN, GROWTH SLIGHTLY UP

 

The Office for Budget Responsibility (OBR) has forecast that UK GDP will grow by 0.8% this year and 1.9% next year.

Inflation has receded, and markets are expecting a decline in interest rates accordingly.

However, output has stagnated, and there are reports that higher and rising levels of inactivity offset the impact and size of the UK workforce.

 

PENSIONS, SAVINGS & INVESTMENTS

 

Individuals will soon be able to access a new Great British ISA (GB ISA), that Hunt explains would “encourage more people to invest in UK assets”. This will give people an additional £5,000 to save alongside the existing £20,000 ISA allowance, but some in the industry are concerned this may add another layer of complexity to ISAs for consumers.

A British Savings Bond will be made available through National Savings and Investments (NSI), to help people “save for the long-term”, according to the Chancellor. It offers a guaranteed rate, fixed for three years, but the actual rate itself has yet to be announced.

The Chancellor once again mentioned that the ‘pension pot for life model’ is still being explored. This was first mentioned in the Autumn Statement in November 2023, and – at the time – we at Beacon wondered if the practicalities of such a scheme would be viable for consumers.

A major theme in the Chancellor’s statement was ensuring adequate investment in UK assets and businesses. To this end, new powers will be given to the Pensions Regulator and Financial Conduct Authority to judge performance on their returns, not just costs. Defined Contribution (DC) and local government pension funds will need to publicly disclose their level of UK and international equity investments.

The Government’s remaining shares in Natwest will be sold later this year, subject to market conditions.

 

TAXATION

 

National Insurance has been cut for the second Budget in a row, by 2p for workers – from 10% to 8%, following the previous cut in last year’s Autumn Statement,

Stamp Duty multiple dwelling relief has been abolished. This applies to people who are buying more than one dwelling, including those owning holiday lets.

Higher-rate Capital Gains Tax (CGT) on property will be reduced from 28% to 24%. The Chancellor remarked this would bring in more money, as more transactions would be covered. The lower rate of CGT remains in place.

For parents receiving Child Tax Credit, if either parent begins paying over £50,000, they have to start paying back 1% on each £100 they earn over £50,000. From April 2024, this threshold will increase to £60,000. The amount at which the tax credit is withdrawn entirely has been increased from £60,000 to £80,000. A reformed household model is set to be introduced in 2026.

The non-dom tax break for foreign residents within the UK will be abolished, to be replaced by a new scheme. New arrivals will not pay tax on foreign income and gains in their first four years within the UK.

Fuel duty will stay frozen for a further 12 months.

Alcohol duty will remain frozen until February 2025.

 

BUSINESSES

 

The VAT threshold for small businesses was increased from £85,000 to £90,000.

Full Expensing will soon apply to leased assets, as well as owned, as part of draft legislation the Chancellor announced. Last Autumn, the tax break had been applied to businesses investing in ‘plant and machinery’. This is something we at Beacon hoped would be included, in our pre-Budget article.

Small Businesses will continue to receive support from the post-pandemic Recovery Loan Scheme, which will receive a further £200mn.

 

FURTHER INTEREST IN CAMBRIDGE

 

For clients based near our base in Huntingdonshire, you may be interested to learn that a further £10mn will support transport and health infrastructure in Cambridge. The city continues to receive interest from the Government, which wants to see it as the world’s leading scientific powerhouse.

 

This summary was written on 6th March 2024. We will continue to monitor developments, but if you have any questions or concerns about your situation following the announcements, you can reach us on 01480 869 466 or email info@beaconwealth.co.uk.  

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What should be in this year’s Spring Budget?


With a General Election on the horizon, all eyes are focussed on what the forthcoming Spring Budget will contain. Tony Larkins, Managing Director of Beacon Wealth Management, reveals what he believes the Budget should consider at the Spring Budget announcement in March 2024.

The Spring Budget is always a guessing game on what it will contain, and who the winners and losers will be. With the economic climate as it is – the UK dipping into a technical recession at the end of 2023 (Office for National Statistics) – there are some key areas the Government should consider, to boost economic activity and support people’s personal finances.

A stamp duty holiday, to increase house sales and boost spending

Having another stamp duty holiday for 12 months would help stimulate housing sales and encourage people to add to the economy by spending money on decoration and renovation.

The UK housing market has slowed significantly – November 2023 saw a 22% fall in completed housing transactions compared to the previous year (ONS).

The UK is a nation of people who love their homes, and love home ownership. Making it easier for people to move would increase spending on decorations, renovations, extensions, and the VAT receipts from this spending would contribute positively to the economy.

Boost business spending and productivity with more tax allowances

Increasing tax allowances for business capital expenditure will encourage companies to spend more and improve productivity.

The full-expensing policy for businesses announced in April 2023 is only due to last until 2026. Ending it then would have little or no long-run effect on the economy (Institute for Fiscal Studies). The Government should follow through on its desire to make this policy permanent.

The current policy also biases towards purchases of plant and machinery, at the expense of other assets – extending this policy to other types of investment would be welcome.

The CBI has also called for extending business capital allowances to hired or leased assets, not just owned ones. This would give more money back to small businesses, many of whom find it more effective to rent assets than to buy them outright.

Increase R&D spending to promote innovative, sustainable growth

The 2023 Spring budget announced £3.5billion in funding towards making the UK a science and technology superpower (GOV.UK), as part of its wider aim to invest £20bn in R&D in 2024/25 (GOV.UK). The Government also lowered the threshold for how businesses qualified as R&D intensive from 40% to 30% of total expenditure. This ensured another 5,000 SMEs qualified for R&D tax relief.

Continuing this trend in funding would help businesses innovate, grow sustainably and contribute to growth in the UK economy.

Support an ageing workforce with business National Insurance relief

People who work past state retirement age no longer have to pay Class 1 or Class 2 National Insurance (NICs), but employers, however, still have to pay their contributions.

Removing this requirement for employers would bring parity between employee and employer, encourage businesses to take on older workers and, subsequently, this would increase the number of people working past state retirement age and contributing to the economy.

Inheritance Tax: Remove or Reform

Inheritance Tax has always been seen as unpopular – a move on this would be no doubt resonate with voters ahead of a General Election.

Inheritance Tax should either be abolished, or at least changed so that the main residence is not subject to the tax, regardless of value, and remove assets inherited. With house prices increasing the way they are, Inheritance Tax could be payable on a 1-bedroom flat in London, but not a 4-bedroom house somewhere else in the UK! And why should inherited assets cause you to pay tax when the assets have already been taken into account for the deceased.

The Government has said that any movement on Inheritance Tax is just speculation. But abolition or reform by removing a primary residence from the tax calculation could be a popular policy for our nation of homeowners.

At Beacon Wealth Management, we help people and businesses in Cambridgeshire and the East Midlands manage their finances and plan for their financial futures. We always keep an eye on the latest developments in UK policy to help our clients navigate the ever-changing economic landscape.

For a free, informal chat with one of their experts, you can contact us on 01480 869466 or info@beaconwealth.co.uk, or visit their website at www.beaconwm.co.uk.

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Beacon has been selected for the Top 100 for New Model Adviser 2023


We are very proud to announce that Beacon Wealth Management has been honoured with the Citywire New Model Adviser Top 100 award for 2023. This marks the eleventh consecutive time we have received this recognition, and is testament to the hard work of our staff and the care we take with our clients.

“We want to highlight how some of the best firms in the country are thinking about offering value to clients,” explained Charles Walmsley, Editor of Citywire. “Whether it is changes to fees and disclosure in light of the consumer duty or the adoption of artificial intelligence, all these firms have interesting stories about how they are delivering financial advice in 2023.”

Citywire said of Beacon Wealth Management:

“Like all advice businesses, Beacon Wealth Management has been grappling with the FCA’s consumer duty this year. The firm has introduced three new service levels, with fresh terms for each one. In order to improve and confirm client understanding, the firm has changed its suitability reports; a new feature checks that clients understand the fees they pay and the service they can expect.

The firm, which is co-owned by managing director Tony Larkins and his wife Karen, plays an active role in the local community. As well as sponsoring events including Kimbolton’s fireworks and a local cricket match, Beacon raised £11,492 for Sue Ryder St John’s Hospice.”

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Top 100 for 10 Years Running!


We did it…..we are in the New Model Adviser Top 100 for the 10th year running!

“ESG is at the heart of everything Beacon Wealth Management does. In the past year, ESG made up 80% of the firm’s recommended funds and 56% of it’s assets under advice. Beacon has recently celebrated 10 years of it’s five risk-rated Ethical portfolios.

Beacon’s new campaign Greener Us has seen it review what it does as a company and make changes – big and small – to reduce it’s carbon footprint. This past year it planted a wildflower meadow for the local community, built bug hotels in the office garden and installed smart metres.

Beacon has a task force called the ‘Good to Great’ team, whose role is to continaully explore the client and staff experience to find opportunities for improvement. Managing Director, Tony Larkins, heavily invests in the team and in staff training as he believes employees are the company’s most important asset. “

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Top 100 for the 9th year!


We have made the New Model Adviser Top 100 for the nineth year running!!
“Beacon Wealth Management has invested £2m in the local community over the years to help keep shops and offices open to small businesses, prevent the residential conversion of a local pub and support many local initiatives.
Community involvement has been a key focus during the Covid-19 pandemic. Its ‘every superhero needs a sidekick’ campaign highlighted and thanked caring locals. Beacon bought a customised bench for a local park and planted a pictorial wildflower meadow, spanning 540 square metres, to recognise community spirit during lockdown and provide a place for those affected by it.
Its support has extended to taking over a section of a popular local magazine to save it from going out of business and sponsoring four local sports clubs that have suffered during Covid.
Beacon started its own ethical portfolios in 2011. Although less than half of its assets are in ESG portfolios, they accounted for 95% of fund recommendations over the past year.”
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Armed Forces Covenant Recognition


We are excited to announce that we have been recognised by the Ministry of Defence for our support to the armed forces, and been awarded an Armed Forces Covenant.

We are offering past and current armed forces personnel and their families 10% discount (fees dependent on service provided) upon showing valid ID.

‘We don’t shout a lot about the things we do, as we do it for the right reasons, not for recognition, and therefore support areas that we feel are important to us, our team and clients. To be recognised for an aspect of that is fantastic, and testament to our Managing Director, Tony Larkins, dedication to doing good and helping others.’ Commented Katie Kitson, Beacon Wealth Management Marketing Consultant.

‘It is an honour to be recognised.’ commented Tony Larkins Managing Director.

We are entering the Remembrance celebrations with the slogan ‘Proudly wearing ours’ and hope many of you will also be doing to same.

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One of the best solicitors in the UK


Beacon Wealth Legal, situated in St Neots, St Ives, Sawtry and Kimbolton have just been announced as one of the best solicitors in the UK at the Modern Law Awards, held on Thursday 6th February.

 Like many award ceremonies there were numerous categories available, and Beacon Wealth Legal were chosen for ABS of the Year. The criteria to be considered included showing successful implementation of strategic goals as demonstrated, for example by development of new practice areas, financial performance and community involvement, reflecting the size of the business.

As a proactive company within the community, last year sponsoring St Neots Armed Forces Weekend, running their own not for profit local community events such as an Easter Egg Hunt in St Ives (due to return again this year), and sponsoring local events and societies.

Beacon Wealth Legal have also recently introduced a brand-new service – Immigration, headed up by a very experienced and successful solicitor Alex Adeyemo.

Managing Director, Tony Larkins attended the prestigious evening in Manchester; “It is brilliant that our team have been recognised for their hard work and dedication. There is a lot of competition within law and to be singled out as one of the best firms in the UK is an enormous achievement, and one I am very proud of our team to have been highlighted for.”

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Legal Firm Shortlisted


Beacon Wealth Legal have been shortlisted as a finalist in the Modern Law Awards as ABS of the Year!!

The Modern Law Awards offer a unique and timely opportunity to celebrate not only innovative business leaders, but those changing the face of business strategy and development, regulation management and client care throughout the organisation.

The award Beacon Wealth Legal have been shortlisted for is ABS (Alternative Business Structures) of the year. Beacon have been selected as they demonstrate a successful implementation of strategic goals, for example by development of new practice areas and community involvement, reflecting the size of the business.

The awards take place on Thursday 6th February 2020, where the winner will be announced.

Tony Larkins, Group managing director, Beacon Wealth Group commented; “Beacon Wealth Legal has grown a lot since 2015 having taken over 2 different practices. Despite this our team are motivated and have been instrumental in the creation of departments. They are proud to be a part of the Beacon family as we continually focus on improving to our client’s best interests.”

 

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Beacon Wealth Group awarded Best Business at St Ives Carnival


Beacon Wealth Group have been awarded Best Business at the St Ives Carnival that took place on Saturday 13th July 2019.

Beacon Wealth Group (made up of Beacon Wealth Management and Beacon Wealth Legal) were proud to take part in the St Ives parade as they celebrate 20 years of the Carnival and Music Festival at Hill Rise Park.

The St Ives Carnival and Music Festival is the biggest free community event in St Ives and takes place over 3 days: outdoor cinema on Friday 12th July, Carnival, Parade and Proms in the park on Saturday 13th July, and a Music Festival on Sunday 14th July.

Tony Larkins, Group Managing Director commented; “Beacon Wealth Group are keen supporters of the community and were proud to take part in the parade and to help celebrate their 20th anniversary of the carnival and even more proud to have won Best Company, our Marketing team did a fantastic job.”

Distinctively recognisable in their gold dresses and blue headbands, the marketing team took part on foot (in heels) carrying a large flag and handing out hundreds of freebies to all the spectators.

Katie Kitson, Chartered Marketing Manager, commented; “It was a great event and a real show of community spirit. We all had a great time and enjoyed seeing everyone’s faces when handing out the freebies. It was a fantastic community event.”

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