Flying kites. The deliberate leaking of information by the Treasury to gauge public opinion on any policy changes they may be weighing up. You didn’t really think this stuff gets into the media because some inattentive numpty accidently hit the ‘enter’ key? Nope. The Treasury knowingly lets one slip out then sits back to wait and see exactly how the public might react to whatever hellish stink has polluted the atmosphere.
This time last year the papers were full of kites but this year there seems to have been little to excite the masses into a righteous pre-budget froth. It’s worrying. It’s generally known that the quiet ones are the worst but this parliamentary silence is probably more unsettling than loads of scurrilous front-page rumours.
I imagine that Horrible Healy is playing his cards very close to his chest for his first budget because he is unlikely to be delivering any pleasant early Christmas presents. We’re all on the naughty list although if he gave everyone a lump of coal at least it may go some way to reducing energy bills. (Price cap rumoured to increase somewhere between 16% to 24% in January 2027).
The best way to deliver bad tidings is unexpectedly then people have limited or no time to react to the news.
Too many rumoured tax increases are going to send more rich folks running for those tax-haven hills, a scenario the Government are keen to avoid at all costs particularly as they’ve lined up all their ducks to further tax that super-wealthy one percent. Naturally, if there are no rich poshos left to tax then the spotlight is going to shift firmly on us ordinary peeps.
In the same way that gardeners are tending the flower borders, preparing them for that long winter sleep, we too should be weeding through our personal finances now getting them combat-ready for any fight, flight or freeze responses to whatever the Treasury has to throw at us.
I’ve already withdrawn a chunk of private pension to max out my cash ISA in case the Chancellor cuts the savings thresholds even further or increases the basic rate of income tax or savers tax. I’d rather take a 20% hit now but be ready to take advantage of any base rate rises coming after the budget. If he does increase income tax rates imagine the mad financial scramble of lemmings trying to avoid the taxation cliff edge before next April.
Don’t forget that cash ISA savings thresholds are only at £20,000 until next April after which it will drop down to £12,000 for anyone that is under 65 years old. Since cash ISA accounts are pretty much the only legitimate way for savers to shelter money from the tax man in the UK then it makes sense to squirrel away as much of your hard-earned dosh into them because my gut feel is that eventually in the dim and distant future, cash ISAs may be phased out thus forcing anyone building up a sizeable nest egg to pay savers tax.
It’s important to remember that some kites may fly but never actually get off the ground so always exercise due diligence before making any hasty financial decisions. Crunch those numbers. Ask AI. Flip a coin. Stick a finger in the air. Just be ready to act when the curtain falls on 28 October. In the meantime, keep looking out for those kites.
