The November Budget was not as bad as advisers feared it would be for their clients and firms, although frustrations over ‘endless tinkering’ remain, according to The Lang Cat.

Its research prior to the Budget found that 92 per cent of advisers expected the Budget to have a negative impact on their clients, and just 27 per cent anticipated a positive effect on their firm.

However, following the Budget, The Lang Cat found that 76 per cent still believed the changes would adversely affect their clients, while 41 per cent expected their firm to benefit.

Despite the change in expectations, advisers said the Budget had delivered another round of ‘fiddling at the edges’.

Advisers expressed their desire for meaningful reform, warning that frequent, piecemeal policy changes created uncertainty and made long-term planning more difficult for clients.

The system was widely seen as too complex, changeable, and politicised, with common suggestions including a simplification of the tax system, especially around income tax and national insurance, and scrapping manifesto pledges that prevent ‘rational’ tax policy.

The most unpopular policy change was the £2,000 cap on salary sacrifice, with advisers warning this limit was too low, will add administrative complexity, and disproportionately affect ordinary savers.

Furthermore, many advisers said the measure risked undermining pension planning and overall savings stability.

Respondents were found to generally prefer straight income tax rises over several smaller adjustments.

Advisers also raised concerns about new ISA rules, lower cash ISA limits, and what they saw as added complexity across the ISA landscape.

“Advisers went into Budget week expecting a hammer blow for their clients,” said The Lang Cat consulting director, Mike Barrett.

“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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