Uncertainty, confusion and fear stemming from Rachel Reeves’s first Budget in October 2024 are contributing to higher demand for advice from both existing and prospective clients, according to Flagstone’s latest poll of UK financial advisers.
Key findings
- 53% of financial advisers polled are seeing more demand for additional services from existing clients
- 55% are seeing more demand for advice from new clients
- 33% say demand for ongoing advice (as opposed to ad hoc) is higher than before the Budget
- 60% say clients value their advice ‘more than ever’
Asked to elaborate on the reasons driving a surge in interest and demand from clients, two fifths (41%) of advisers say that the tax changes and rumours of the last few months are creating confusion, and two thirds (67%) see the opportunity to provide much-needed clarity and reassurance.
This renewed appetite from clients is not considered a passing trend either. Almost all (92%) advisers say their clients’ biggest preoccupation is with inheritance tax on pensions – a policy that is not scheduled to take effect for another two years. Likewise, for a third (32%) of advisers, concerns surrounding the future Cash ISAs are high among clients, and HM Treasury is not expected to provide more clarity on these for several more months.
Claire Jones, Head of Strategic Partnerships at Flagstone, comments: “Access to common-sense, plain English financial advice is needed more than ever. The government is making good on its pledge to increase the tax burden for higher earners around the country, and changes to tax policy are heavily trailed before being formally announced. With the Treasury not providing more clarity on these topics, this can give rise to concerns and confusion. The more front-footed advisers can be in the face of financial uncertainty and fears, the greater they deliver on their worth and value to clients, many of whom will stay with them for the duration of their careers.”
Commenting on the insights, James Dyas from Dyas Wealth Management says: “Recent tax changes and ongoing speculation have significantly reshaped the financial advice landscape, impacting both clients’ concerns and the way advisers provide guidance. Many clients are increasingly worried about potential inheritance tax liabilities on pensions, and uncertainties surrounding the future of Cash ISAs. While these challenges are significant, they also present opportunities. These evolving priorities are prompting existing clients to seek more ongoing, comprehensive services, and helping more people to recognise the value of professional advice, leading to an increase in new enquiries and referrals.”
