The Budget was “deeply disappointing” in its lack of substantive reform according to UK advisers, new research from the lang cat has revealed.
Advisers warned that frequent, piecemeal policy changes create uncertainty and make long-term planning harder for clients, with the system seen as too complex, changeable and politicised.
Common suggestions included simplification of the tax system, particularly around income tax and National Insurance, as well as scrapping manifesto handcuffs that prevent rational tax policy.
The most unpopular measure by a considerable margin was the new £2,000 cap on salary sacrifice, due to come into force in 2029. Advisers argued the limit is too low, will add administrative complexity and will disproportionately affect ordinary savers rather than the wealthiest. They also warned it risks undermining pension planning and overall savings stability.
Instead, advisers expressed a preference for straight income tax rises over multiple small adjustments, with some suggesting a 2p increase in income tax, higher personal allowances or new tax bands.
Despite this, advisers said the outcome of the Budget was “marginally softer” than feared, following months of rampant speculation around potential announcements.
Before the Chancellor’s statement, 92% of advisers expected the Budget to be bad news for their clients, with just 27% anticipating a positive impact on their firm. Following the Budget, 76% still felt it would adversely affect clients, while 41% believe their firm might benefit, with more people needing help to navigate the changes.
Mike Barrett, consulting director at the lang cat, said: “Advisers went into Budget week expecting a hammer blow for their clients. What they got instead was something softer but ultimately still disappointing.
“The message from the profession is crystal clear – stop tinkering. These small, complicated adjustments don’t help advisers plan, don’t help clients save, and don’t address the long-term issues the country needs to tackle including people’s financial resilience.
“If the Government wants to build trust and stability, it needs to focus on simplicity and transparency, not add yet more moving parts to an already complex system.”
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