MoneyWeek Talks How the Budget will hurt you
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Dec 4, 2025 Cris Heaton, a Contributing Editor at MoneyWeek with a sharp focus on tax and savings policy, joins the discussion. He criticizes the Autumn Budget's confusing and restrictive ISA changes, arguing they won't fix UK equity investment issues. The conversation highlights how salary sacrifice pension caps will discourage saving and worsen the personal allowance cliff, effectively creating a 60% tax trap. The new mansion tax could unpredictably impact homeowners, while inheritance tax tweaks threaten family businesses. Cris urges listeners to take action on their allowances.
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ISA Cut May Not Drive Investment
- Cutting the cash ISA allowance aims to push savers into investments but may not make nervous savers invest.
- Contradictory tax moves (higher dividend tax, pension changes) undermine that aim.
Cash-Like Funds Are Not Risk-Free
- Money market funds inside stocks and shares ISAs can act like cash substitutes but lack FSCS protection.
- Widespread use could prompt future restrictions on these funds within ISAs.
The £100k Cliff Creates Perverse Incentives
- The £100,000 personal allowance withdrawal creates an effective 60% marginal rate that salary sacrifice helped avoid.
- Removing salary-sacrifice relief complicates planning and worsens perceived unfairness.