Budget watch – Charles Stanley’s Tom Hawkins highlights key points for advisers to think about

October 31, 2025

In the following analysis for today’s Friday Focus pre-budget feature, Tom Hawkins, Head of Intermediary Sales and Strategic Partnerships (South), Charles Stanley, runs through the key areas which he thinks advisers most need to think about ahead of the Chancellor’s budget on 26^th November.

“Financial advisers are awaiting confirmation of which taxes will rise in the 26 November Budget. Speculation continues over whether the Chancellor could break a manifesto pledge by increasing income tax or national insurance. However, it’s also possible we could see a series of smaller fiscal adjustments, which could add complexity to the system.

“With the timing of this year’s Budget later than usual, advisers and their clients have been following the rumour mill for months. Many will hope to avoid last-minute rule changes with short transitional periods. As ever, it’s going to be vital to caution against knee-jerk reactions to any unexpected announcements or sudden market moves.

Taxing times

“While tax rises have been widely anticipated and actively signalled by the government, the question remains: which taxes and by how much?

What about investments?

“UK equity investors will be alert for measures to revive capital markets – potentially influencing sentiment and flows.

Key questions include:

Will the Chancellor simplify the ISA market or cut the Cash ISA allowance?
Could we see a minimum UK equity holding in Stocks & Shares ISAs?
Will there be further changes to Business Relief? How will all qualifying assets be treated from an IHT perspective?
Could pensions face another shake-up?

“When it comes to the market outlook, the Charles Stanley Asset Management team expects limited immediate upside, with risks skewed to the downside. Fiscal tightening should support lower gilt yields, but a crisis of confidence could trigger volatility, making dynamic asset allocation critical. The team also believes Sterling is vulnerable to fiscal credibility concerns, despite longer-term support from relatively higher Bank of England rates and gilt yields.

“In uncertain times, it’s even more vital for independent financial advisers to work with a trusted asset manager to deliver robust investment solutions aligned with client planning.”

Check out all the thinking and insights from experts across the industry who’ve been sharing their Budget outlook with us for today’s Friday Focus here: https://ifamagazine.com/category/friday-focus/