After months of noise and speculation, Chancellor Rachel Reeves finally delivered her inaugural Budget statement to a packed House of Commons yesterday.
As Labour’s first Budget for 14 years, it was never going to be low key.
In the days before, we were warned the government would have to make "tough decisions" to address what they claim is a £22 billion shortfall left by the outgoing Conservative government.
And there were plenty of shake-ups affecting investors, employers, landlords and second-home owners, among others.
Here are some of the key changes that could affect your clients’ finances:
For savers, the Budget offered few surprises— there were no major changes to ISAs or savings allowances.
Still, times like this are a good opportunity to evaluate your clients’ cash holdings and make sure they’re earning as much interest as possible.
And with potential rate cuts on the horizon, now is the perfect time to recommend a review.
With the Bank of England base rate sitting at 5% [October 2024], the environment for cash savers is good.
Interest rates on savings accounts are holding strong, with many paying 5% or more —a stark contrast to recent years when top rates barely scraped 1%.
However, with inflation dipping below the government’s target of 2% for the first time in three years in September, reports suggest we could see one, if not two base rate cuts before the end of the year.
This could spell trouble for your clients’ savings. If the base rate falls, providers will undoubtedly cut rates.
That’s why now is the perfect time to ensure your clients are securing the best rates available. And if they aren’t, encourage them to switch to a higher-paying account that can significantly boost their returns.
Advise your clients not to let brand loyalty hold them back from exploring better options. Too many savers stick with their existing provider and end up missing out on better interest rates elsewhere.
Some of the lesser known challenger banks currently offer market leading deals as they compete for customers.
Just keep in mind these headline-grabbing deals are often only available for a short period of time so act quickly to make sure your clients don’t miss out. Keeping your clients informed and being proactive can strengthen your relationship and showcase your value as their trusted adviser.
If chasing the best rates for your clients feels overwhelming - or you simply don’t have the time - consider using a cash management platform like Akoni. Akoni provides a hassle-free way to save, move, and manage your clients’ money.
Want to find out more about how Akoni can simplify managing your clients’ savings? Get in touch today.
Or, if you’re already using Akoni to manage your clients’ cash, now’s the time to login and check whether you could be getting a higher return on their savings. We update our panel of partner banks daily, and we’ll notify you of the latest rates, so you never need to miss out on a better deal.
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