With the UK Budget announcement on October 30th fast approaching, many clients are feeling uneasy about their financial planning. The new Chancellor, Rachel Reeves, has sparked widespread speculation in the media regarding potential changes to taxes, pensions and various financial policies. From possible capital gains tax hikes to pension reforms, clients are left wondering how to prepare for what might come. The uncertainty is unsettling.

As financial planners, we are operating in a decision-making environment under uncertainty, where information gaps are the norm. Our clients look to us for clarity, but when even the government’s plans are fluid, providing concrete advice can feel like a challenge.

This is where frameworks from decision science can offer practical tools. Take the Bayesian approach. Rather than waiting for all the details to emerge post-Budget (which would delay planning), we can help clients make informed decisions based on the best available information NOW and then adjust those decisions as new details become clear. This model allows us to start with an initial strategy based on educated guesses or mooted changes and adapt as the actual policies unfold.

We can apply this thinking across several areas:

• Tax planning: Prepare for potential increases in capital gains tax or changes in inheritance tax thresholds without making irreversible decisions. Having a flexible tax strategy in place allows clients to act quickly once the 30TH October Budget is announced.
• Pensions: With possible reforms to pension tax relief on the horizon, clients can pre-emptively review their contributions and drawdown strategies, balancing current needs with a readiness to pivot if significant changes are introduced.
• Investments: The speculation around new taxes or increased levies on wealth may create anxiety, but scenario planning with clients can highlight how various changes would impact their portfolios and suggest ways to minimize risk.

While we may not yet know the full details of the Chancellor’s announcement, the key is to empower clients with strategies that are agile enough to respond as the situation evolves. Waiting for perfect clarity can lead to missed opportunities or poor tax outcomes. Instead, we can guide clients through the uncertainty with a flexible, dynamic approach to their financial plans.

In this environment, confidence comes not from having all the answers upfront but from having a robust process that adapts as new information emerges. Preparing clients to act decisively, even in the face of incomplete information, is where we can add real value in these uncertain times.

If you would like to have a conversation about planning pre-emptively for the October 30th announcement, please get in touch or book a call, free of charge, with me via the link below. I would be happy to help.

Schedule a no-obligation call with me, Adrian Johnson, or my fellow Partner and Financial Planner at PWP, Adam Walkom, free of charge: Appointment booking – Permanent Wealth Partners

Adrian Johnson