Our Services
We help you consider all areas and put together a financial plan that helps you to achieve your financial goals
Read more
Looking for Financial Advice?
Book a no obligation call with one of our experts
Book today
Company Info
Knowledge Hub
On 6th September, Liz Truss, having defeated Rishi Sunak in the ballot of Conservative members, became Prime Minister. She duly appointed Kwasi Kwarteng – a man dubbed Truss’s ‘political soulmate’ by some of the press – as her new Chancellor.
On Friday September 23rd, Kwarteng presented his ‘fiscal event’ to the Commons. It marked a complete change of direction from the Treasury orthodoxy of previous Chancellors such as George Osborne, Philip Hammond and Sunak himself. Growth was prioritised, as Kwarteng unveiled the biggest tax cuts in half a century.
‘At last! A True Tory Budget,’ was the Mail’s headline. The right-wing think tanks were unanimous in their praise. But several papers and pundits described the moves as a gamble: ‘Truss’s great tax gamble,’ was the Times’ headline.
It was a gamble which didn’t pay off for the Chancellor and his boss. As Kwarteng finished his speech, the pound fell below $1.10 for the first time since 1985. As we wrote our report on the fiscal event for clients, the pound was trading at $1.08, having at one point touched $1.03. The Bank of England was forced to step in and the fate of the Chancellor and Prime Minister was effectively sealed. Kwarteng resigned on October 14th – to be replaced by Jeremy Hunt – and Truss followed ten days later. This time there was no leadership election: former Prime Minister Boris Johnson reportedly had enough backers among MPs but withdrew from the race, leaving Rishi Sunak as the only candidate.
A second fiscal event had been planned for Halloween – October 31st. Given the tax rises and spending cuts which had been widely trailed, that would have been a headline writer’s dream. In the event, the new Chancellor decided to push it back to November 17th and upgrade it to a full Autumn Statement. He was, he said, prepared to make “politically embarrassing” choices – and insisted that the delay to the Statement was the best course of action.
Download full report here
If you have any questions about how any of these changes may impact your financial plans, please get it touch with your Ascot Lloyd Financial Advisers who will be happy to help. Request a call back
If you have any questions about how any of these changes may impact your financial plans, please get it touch with your Ascot Lloyd Financial Advisers who will be happy to help.
Request a call back
#StayInTouch
Our Financial Advisers are available on the phone so please contact us if you have any questions.
IMPORTANT INFORMATION
Past performance is not a guide to future performance and may not be repeated. Investment involves risk.
The value of investments and the income from them may go down as well as up and investors may not get back any of the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rate changes may cause the value of overseas investments to rise or fall.
This communication is for information purposes only and is based on our understanding of current UK tax legislation and HM Revenue and Customs (“HMRC”). Levels and bases of taxation and reliefs are subject to change and their value to you will depend on your personal circumstances. Nothing in this communication constitutes financial, professional or investment advice or a personal recommendation.
This communication is for information purposes only. Nothing in this communication constitutes financial, professional or investment advice or a personal recommendation. This communication should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments in any jurisdiction. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in the document
Any opinions expressed in this document are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or companies within the same group as Ascot Lloyd as a result of using different assumptions and criteria.
This communication is issued by Capital Professional Limited, trading as Ascot Lloyd. Ground Floor Reading Bridge House, George Street, Reading, England, RG1 8LS. Capital Professional Limited is registered in England and Wales (number 07584487) and is authorised and regulated by the Financial Conduct Authority (FRN: 578614).
