Commentary from Phillip Slater, Ellisons Solicitors, on the autumn budget under the new Labour government; 

“As we look forward to the first Autumn Budget from the new Labour government, all the commentary suggests they have inherited a fiscal position worse than anticipated with significant fiscal gaps to plug. It feels like an easy and obvious political statement to make, whether or not it is valid.

"There is no doubt that balancing the books between manifesto promises and the existing state of the public finances will likely be a concern for the new Labour government. Labour pledged not to raise headline taxes. Instead, the focus is on growth. Hopefully, sustainable and responsible growth within the UK and the UK economy over time. Given the relative immediacy of the Autumn Budget, planning for the new government to 'take bites' around the edges of the taxation universe seems necessary as much as those ‘bites’ seem likely - where they might be taken and in what measure is a little less clear at the moment! If it isn't to be income-related, it will likely focus on capital and wealth.

"To boot, in the context of stimulating growth, base rate cuts look like they will probably be delayed to later in the year. Rate cuts may be made steadily over 2025 and 2026, but perhaps less frequently than most would like to have hoped going forwards, including UK SMEs as the driving force of the accessible UK business economy.  

"The new Labour government and the Bank of England will need to wrestle with the issue of, in the eyes of many, having achieved the target inflation rate of 2%, but for those that dig deeper, the acknowledgement that this blended rate of headline inflation masks higher prevailing rates of inflation for things that directly hit the spending pocket of the majority (ignoring the 'skew factor' of utility price deflation).

So, a careful balancing act is required.”