Planners urge Chancellor to put growth ahead of taxes

(Financial Planning Today)


Financial advisers have urged the Chancellor to focus on initiatives to boost economic growth in his March Budget, according to new research.

The research from pension and investment provider Aegon found that 82% of financial advisers said Chancellor should focus on growth initiatives in his next Budge.

Some 78% warned that major tax rises could put post-pandemic economic recovery at risk.

Advisers were generally unsupportive of tax rises but 43% supported an increase in Capital Gains Tax rates.

Support for increases to income tax rates for higher and additional rate tax payers was 33% and 27% supported the introduction of a health and social care levy.

Some 37% of advisers said that urgent action was needed to balance the books.

Steven Cameron, pensions director at Aegon, said: “While advisers believe the focus for the time being should be on stimulus measures, it’s clear that as the economy strengthens, calls will grow to recoup some of the huge amounts of spending on supporting jobs and businesses.

“While no-one ‘likes’ tax increases, it looks like CGT is one area where there is a greater support for reform. But even this is not without its controversies as while the tax is typically paid by the wealthiest individuals, it could also affect small business entrepreneurs who the government is keen to encourage.”


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