Shares - not just for posh ****s

Unless you have been hiding on Mars, you will know that the Budget lands next week and it's not going to be one of those dull ones, where the most exiting part is the news on potholes and alcohol duty.

As the media tries to read the tea leaves, ‘working’ person has joined ‘woman’ as a word which is causing politicians definition angst. The loose vibe is that taxes won’t rise for working people, but as Starmer recently defined a working person as someone without the ‘ability to write a cheque when they get into trouble’, that would include my dog, who has the shabbiest work ethic of any sentient being in the country.

I know what he’s trying to get at, but I think it’s very difficult when the Prime Minister starts to define ‘working people’ as people without any shares or property, because it reinforces an old-fashioned narrative which I’ve spent my working life trying to dispel. Namely that shares are only for posh tweed-wearing landowners.

Over the last 5 years, the number of DIY investment accounts in the UK has shot up from around 5.2 million to 10.6 million. About 1 in 3 adults today own some sort of any investment product, not including a workplace pension. It was only about 30 years ago that you would have to pick up a telephone to make a trade, which would cost you about £100 a pop. Today, the average cost of trading shares across 17 online platforms is £6.05.

At its heart, investing is just believing that tomorrow can be better than today, and backing innovation and growth, in return for a slice of the action. And these days you can get started online with just £1. Let’s not encourage the narrative that shares are only for posh tw*ts.

Stepping off my soapbox, we know that people are anxious about next week. Rachel Reeves has plans to fund, and she may as well act now and front-load the pain. It feels likely that Capital Gains Tax (CGT) and Inheritance Tax will rise. The rumour mill is in overdrive about pensions, National Insurance on employer contributions and tax-free cash. And it's possible that the current freeze on Income Tax thresholds will be extended.

I don’t think there is much point in any last-minute panicking. For the majority of changes, there will be time to assess known facts and make a plan before most are implemented. So let’s park any further speculation and I will bring you a bumper blog next week, looking at what’s been announced, what it means for your money and what to consider.

Seeking some light relief away from CGT and pension tax relief, this week I have been watching Jilly Cooper’s Rivals. Although notionally employed as a Tory minister in Maggie’s cabinet, I don’t think anyone could define the jodhpur-wearing cad Rupert Campbell-Black as a working person. Unless nooky is a job? If you need to forget the world for a bit, this wild bonkathon to a pumping 80s backing track is great fun.

If this isn’t your cup of tea, you might prefer this piece which asks whether tech stocks and the AI bubble is about to burst? Or if you really want the other extreme in the excitement stakes, have you considered trying to trace any lost pension? There is currently an estimated £31 billion up for grabs in the form of lost pensions in the UK. If you think you might have a few scattered in your working life wake, this article could help reunite you.

Have a great weekend everyone.

Holly

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