The government should adopt an investment-led approach in the Autumn Budget and resist further taxes on wealth, Rathbones has argued.

In the lead up to the Budget later this month, Rathbones undertook analysis that examined five policy areas facing the Chancellor, Rachel Reeves, as she prepares for the Budget.

Through the analysis, the wealth management firm outlined five recommendations it believed would drive long-term and sustainable investment.

Rathbones warned of rising anxiety among professionals, business owners, and families, with the five policy areas assessed being of “acute concern” to its clients.

It argued that only a bold, investment-led approach could address weak growth and rising tax pressures that have been affecting the UK economy.

“Our clients are the people whose ambition and success underpins the prosperity of businesses, organisations and communities across the UK,” Rathbones CEO, Camilla Stowell, stated.

“If they aspire and succeed in their professional lives, businesses and personal decisions, the whole country stands to gain. But many now feel anxious about the future, worried about their ability to live well in retirement, support their families, or grow their businesses.”

“We worry that the government may lose sight of the need for aspiration, and to support and encourage people to strive, build and succeed – because this is how the economy and country will succeed and grow.

“Short-term tax changes which undermine this may ultimately further slow economic growth.”

Setting out its recommendations, Rathbones urged the government to reform business taxation, including more generous capital allowances and changes to the business rates system to encourage entrepreneurship and investment.

It also called for improved incentives for pension saving and the avoidance of cuts to higher and additional rate pension tax relief, and the prioritisation of public investment in regions and sectors that needed it most.

The wealth manager warned that proposals for new taxes on wealth were a “major disincentive” for highly mobile business owners and professionals to come to or remain in the UK, and urged the government to resist further taxes on wealth.

Finally, Rathbones called for the reinvigoration of the housing market, arguing that stamp duty land tax was “suffocating” activity in the housing market, stifling mobility and discouraging private spending and investment, and said this and other taxes on housing should be abolished or reformed.

“It’s not our role to resolve every economic challenge, but as one of the UK’s leading providers of wealth management, we have a duty to give voice to those who are building the country’s future,” Stowell said.

“We urge the Chancellor to focus on policies that encourage aspiration, investment and growth.”

Rathbones head of asset allocation and lead author of the analysis, Oliver Jones, added: “Our analysis shows that the right policy choices now could unlock billions in investment and help secure the UK’s long-term prosperity.

“But short-term fixes like cutting pension tax relief or introducing a wealth tax risk draining capital from the very businesses and individuals who drive growth.

“The government should focus on creating a stable, predictable environment that encourages people to save, invest, and build for the future.”

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