Mistakes, financial or otherwise, are a part of life, and it’s normal to make them from time to time. 

While mistakes can be frustrating, moving past them is important. Holding onto mistakes and letting them dictate the decisions you make now could cause problems. For example, feeling embarrassed about a financial mistake could lead you to avoid engaging with your finances for fear of repeating it, or to skip seeking professional advice because you feel you’ll be judged. 

If financial mistakes are affecting your confidence, here are five ways to emotionally recover. 

1. Reframe your experiences to separate yourself from your decisions

If you view the mistakes you’ve made as personal, it can harm your self-worth. In some cases, reframing your thoughts could help you let go of them. 

Instead of thinking “I made a mistake because I’m bad with money”, you might think “I made a decision based on limited information”. It’s a simple trick that can separate your past mistakes from your self-worth and help you feel more confident tackling financial decisions in the future. 

2. Give the decisions you’ve made some context

Rather than simply viewing errors as mistakes, take a closer look at the context in which they occurred.

For instance, consider what was happening in your personal life. Many people make mistakes when they’re under pressure at work or are experiencing significant life changes. Strong emotions, whether positive or negative, can affect how you approach decisions and may lead you to make mistakes you’d otherwise avoid.

Similarly, reviewing the context might highlight a lack of knowledge. Understanding why you made a decision that seems poor in hindsight could help you be more forgiving of yourself. 

3. Be clear about the implications of your decision 

While confronting the consequences of a mistake can be difficult, it can also be a valuable way to learn from them. Setting out the decision you made and the effect it’s had on your finances could help you avoid making a similar mistake in the future. 

What’s more, if you haven’t fully assessed the implications of a mistake, you might be worrying about its impact. Sometimes uncertainty is much scarier than reality. Fully understanding how financial mistakes affect you could help you create a plan to limit their impact and potentially ease stress. 

4. Stop comparing your mistakes to the success of others

It can be easy to compare your mistakes to the success of others. This might leave you feeling like you should have spotted the mistake and, as a result, harm your confidence. 

However, remember that people rarely talk about their errors, and some may have benefited from financial support, such as an inheritance, that you’re not aware of. So, if you feel down when you look at the circumstances of others, keep in mind that you likely don’t have the full picture. 

Instead, focus on what you want to achieve and the steps you might take. 

5. Talk to a financial planner

Talking about your mistakes can be tricky, but a financial planner is there to help you work towards your future.

A meeting with a professional to discuss your finances is a chance to define your long-term financial objectives and how you could achieve them. They may also help you understand the implications of a mistake and the steps you might take to minimise its effect on your long-term security. 

Setting out a clear financial plan might boost your confidence and help you emotionally overcome a mistake.

Having a relationship with a financial planner could mean you have someone you can turn to if you have questions or concerns in the future, which might help you avoid mistakes. 

If you’d like to arrange a meeting with one of our team, please get in touch. 

Please note: This article is for general information only and is not a personal recommendation or tailored to your individual circumstances. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

After months of speculation and rumour, chancellor Rachel Reeves has delivered the Autumn Budget for 2025. In this update, we’ll explain the key changes and what they mean for you. 

Last year, in her maiden Budget, the chancellor sought to balance the public finances with tax rises to cover a reported £22 billion black hole.

This year, Reeves arguably faced an even more difficult landscape. In turn, she has announced an estimated £26 billion of tax rises by 2029/30. 

The chancellor had to start her speech, however, by acknowledging the “deeply disappointing” and “serious error” of the Budget announcements being released early by the Office for Budget Responsibility (OBR). 

It’s also notable how many predictions ultimately proved to be wide of the mark.

Now that we know exactly what’s included, it’s important to understand the changes and how they could affect you.

The headlines regarding GDP, national debt, and inflation

The chancellor says the government’s plans will reduce borrowing more over the rest of this parliament than any country in the G7.

GDP is expected to grow by 1.5% in 2025, higher than the OBR’s 1% forecast from earlier this year. In subsequent years, the estimations are as follows:

·        In 2026, the economy is forecast to grow by 1.4%, below the previous forecast of 1.9%.

·        In 2027, GDP is forecast to expand by 1.6%, falling short of March's estimate of 1.8%.

·        In 2028, GDP is estimated to rise by 1.5%. In March of this year, the OBR said this figure would be 1.7%.

• In 2029, the economy will expand by 1.5%, again falling short of the previous estimate of 1.8%.

Due to weaker underlying productivity growth, the OBR estimates that tax receipts will be £16 billion lower in 2029/30 than initially forecast in March 2025.

Average inflation is expected to fall over the next three years.

·        In 2025: 3.5%, an increase of 0.2% from the OBR’s original forecast.

·        In 2026: 2.5%, up from the OBR’s 2.1% forecast from March.

• In 2027: 2%.

National debt will stand at £2.6 trillion this year. £1 in every £10 the government spends is on debt interest.

Tax threshold freezes extended until 2031

The Labour manifesto promised not to increase Income Tax or National Insurance (NI), and despite pre-Budget speculation, the government has kept to that promise in this Budget. 

However, the chancellor did announce that the Income Tax thresholds will remain frozen for a further three years beyond the previous 2028 freeze, staying where they are until April 2031. This move will raise £8 billion for the government. Similarly, the Inheritance Tax (IHT) threshold freeze is extended from 2030 to 2031. 

While this will not increase your Income Tax or IHT bills directly, this fiscal drag means more of your income and wealth may be exposed to tax over time. 

The government is also upholding its commitment to bringing pension pots into the scope of IHT from April 2027, and reforms to relief for business and agricultural assets from April 2026.

The tax rates on dividends, savings, and property income will rise by two percentage points 

Tax rates are set to rise for dividends, savings, and property income.

• Dividends: From April 2026, ordinary and upper rates of tax on dividend income will rise by two percentage points to 10.75% and 35.75% respectively. There is no change to the additional rate, which will remain at 39.35%.
• Property and savings: From April 2027, the rate of tax on property and savings income will increase by two percentage points across all tax bands to 22%, 42%, and 47% respectively.

The government confirmed that, even after these reforms, 90% of taxpayers will still pay no tax on their savings. However, these changes are set to impact business owners and landlords.

The chancellor says these increases will raise £2.2 billion in 2029/30.

The ISA allowance will be reformed for under-65s, and some allowances have been frozen

The chancellor announced that from April 2027, the Individual Savings Account (ISA) allowance will change for under-65s.

As it stands, adults can contribute £20,000 across their ISAs, including Cash ISAs and Stocks and Shares ISAs, each tax year. 

From April 2027, £8,000 of this allowance will be reserved exclusively for investments, leaving an available £12,000 that savers can pay into their non-investment accounts, such as Cash ISAs.

Savers over the age of 65 will continue to be able to save up to £20,000 in a Cash ISA each year. 

The allowances for Junior ISAs and Lifetime ISAs are frozen until April 2031 at £9,000 and £4,000 a year, respectively. 

Salary sacrifice on pension contributions to be capped at £2,000

The chancellor put a cap on NI-efficient pension contributions made under salary sacrifice.

Salary sacrifice schemes cost the government £2.8 billion in 2016/17, but this figure was set to triple to £8 billion by 2030/31.

The government will charge employer and employee National Insurance contributions (NICs) on pension contributions above £2,000 a year made via salary sacrifice. This will take effect from 6 April 2029.

The chancellor says that many of those on low and middle incomes will be able to continue using salary sacrifice as normal, while high earners can expect to pay increased NI.

New “mansion tax” on high-value properties

The chancellor announced the much-speculated “mansion tax” that will affect the top 1% of properties. 

The new property surcharge will be paid alongside Council Tax. 

There will be four price bands starting with £2,500 for a property valued between £2 million and £2.5 million. For properties valued more than £5 million, the levy will be £7,500. 

The measure is estimated to raise £400 million by 2031. 

Welfare reforms expected to increase by 2029/30

The BBC reported that changes to the government’s previously announced winter fuel payments and health-related benefits will cost £7 billion in 2029/30.

In addition, Reeves revealed she would remove the two-child benefit cap. This will cost £3 billion by 2029/30.

State Pension: Removal of overseas access to Class 2 National Insurance contributions and committing to the triple lock 

As a result of a loophole in the Class 2 voluntary NICs regime, overseas individuals with a limited connection to the UK can build a State Pension entitlement through cheaper rates.

The government is looking to end this by removing access to the cheapest Class 2 NICs for these individuals. Additionally, it will increase the initial residency or contribution requirements for those living outside the UK.

The chancellor also confirmed the government’s commitment to the triple lock. From April 2026, this will increase the basic and new State Pension by 4.8%, offering up to an additional £575 per year to pensioners, depending on their entitlement.

A range of significant changes for business owners

In addition to the Dividend Tax increase, the chancellor announced a range of changes that could affect business owners, including:

·        Increases to both the National Living Wage (NLW) and National Minimum Wage (NMW). From 1 April 2026, the NLW paid to workers aged 21 and over will rise by 4.1%, from £12.21 to £12.71 an hour, increasing annual income by approximately £900 a year for full-time employees. For those aged 18 to 20, the NMW will rise by 8.5% from £10 to £10.85 an hour, equivalent to around £1,500 a year if working full-time. For 16- and 17-year-olds, and those on apprenticeships, the NMW will rise by 6%, going from £7.55 to £8 an hour.

·        Listing Relief from Stamp Duty Reserve Tax for some businesses. The chancellor said this will “make it easier for entrepreneurs to start, scale, and stay in the UK”.

·        Reduced Capital Gains Tax (CGT) relief for Employee Ownership Trusts (EOTs). When a business is sold to an EOT, CGT relief will fall from 100% to 50% starting from November 2025. This will raise £0.9 billion from 2027/28 onwards.

·        Fully funded apprenticeships for under-25s. This will make them effectively free for small- and medium-sized businesses (SMEs) from April 2026.

·        Lower business rates for more than 750,000 retail, hospitality, and leisure properties. That move will be funded through higher rates on properties worth £500,000 or more, such as warehouses used by online retail.

• Customs duty will apply to parcels of any value from March 2029 at the latest. There is an existing exemption for parcels worth less than £135, favouring large-scale importers. 

Other announcements that may affect you

·        Household energy bills will fall. Reeves is scrapping the Energy Company Obligation (ECO) scheme, saying that on average, families will save £150 a year in 2026.

·        A new tax on electric vehicles. The Electric Vehicle Excise Duty (eVED) will come into effect in 2028 and equal 3p per mile for battery electric cars and 1.5p per mile for plug-in hybrids. The rate per mile will increase annually in line with the CPI. 

·        Fuel duty will be frozen until September 2026. In addition, a new “fuel finder” will help drivers find the cheapest fuel, saving the average household £40 a year.

·        Reducing the levy threshold on soft drinks. From 1 January 2028, the sugar tax will also be applied to milk-based drinks, including bottled milkshakes and lattes.

·        A spousal exemption for agricultural and business asset IHT relief. Unused combined business and agricultural asset IHT relief will become transferable between spouses and civil partners.

·        Tobacco Duty and Alcohol Duty will both be uprated. Tobacco Duty will be uprated as announced last year, and Alcohol Duty will now rise with inflation.

• Rising taxes on online gambling. From April 2026, Remote Gaming Duty will increase by 21% to 40%. A new Remote Betting Rate set at 25% will be introduced from April 2027, though horse race betting will be exempt from the changes. 

Other key thresholds that remain the same

More broadly, the chancellor made no mention of other key thresholds that will remain the same. These include:

·        The pension Annual Allowance

·        Stamp Duty Land Tax for residential properties 

• The headline rates of Income Tax, NI, and VAT, as outlined in the government’s election manifesto.

Please note

All information is from the Budget documents on this page.

The content of this Autumn Budget summary is intended for general information purposes only. The content should not be relied upon in its entirety and shall not be deemed to be or constitute advice. 

While we believe this interpretation to be correct, it cannot be guaranteed, and we cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained within this summary. Please obtain professional advice before entering into or altering any new arrangement.  

October 2025 proved to be a positive month for many investors, with markets reaching record highs. Read on to find out more about what factors may have affected your portfolio’s performance.

Remember to take a long-term view when assessing your investments and consider your risk profile when making decisions. 

Markets experienced record highs, but investor uncertainty continued to have an effect

The month started strongly with the FTSE 100 closing at a record high on 1 October, according to the Guardian. AstraZeneca was the biggest riser, making the pharmaceutical firm the most valuable company listed in London.

In the year to 1 October, the FTSE 100 was up almost 15% and could be on track for its strongest year since 2009, when the market recovered from the financial crisis.

It was a similar picture in the wider European and US markets.

On 2 October the Guardian reported, European shares hit a record high. The pan-European Stoxx 600 index increased by 0.7%, driven by gains in German and French companies. Wall Street also reached new heights when it opened, with the S&P 500 index up 0.3%. 

Despite the promising start to the month, French stocks fell on 6 October. AA Stocks reported the market fell when new prime minister Sébastien Lecornu resigned after less than a month in office. The French index CAC 40 tumbled 1.8% as a result. 

Signalling that investors may feel nervous, a BBC article noted the price of gold surpassed $4,000 an ounce (£3,005) for the first time on 8 October. Gold is often viewed as a “safe” asset, and its price has increased by 50% in the first nine months of 2025. 

The Guardian noted soaring price of gold is good news for mining companies. Antofagasta, which operates gold mines in Chile, was the biggest riser on the FTSE 100 after jumping 2.7%. 

Trade tariff threats and actual tariff measures have caused market volatility throughout 2025, and October was no different. According to the Independent, on 13 October, the US and China threatened to impose tariffs, which led to Asian stocks falling. 

On 17 October, according to the Guardian, anxiety around US regional banks and credit concerns spooked the market. The US S&P 500 index was down 1.2%, and the ripple effect was felt in many other markets.

In the UK, the concerns sparked a sell-off that knocked nearly £11 billion off bank valuations. The FTSE 100 closed 0.87% down, with Barclays (-5.66%), NatWest (-2.88%), and HSBC (-2.5%) among the biggest losers. 

There was a similar sell-off in Europe. The Stoxx 600 index (which includes UK banks) was down 2.4%, and around €37 billion (£32.6 billion) was wiped off the value of the European banking sector. 

The Asia-Pacific markets weren’t immune. China’s CSI 300 dropped 2.3% and Japan’s Nikkei fell 1%, although the dip in this region was partly attributed to investor caution over profits of AI shares. 

The BBC reported Japanese markets quickly recovered on 21 October when Sanae Takaichi won a parliamentary vote to become the country’s first female prime minister. She is expected to push for looser fiscal policy. 

The US announced new sanctions on Russia on 23 October, which pushed up the price of crude oil. This led to both BP and Shell shares rising by around 3.5% and the FTSE 100 reaching another record high, according to a Share Talk article. 

The Guardian reported the positive news continued on 24 October. The FTSE 100 broke the record set the previous day and exceeded 9,600 points for the first time. On the back of an inflation report, the US indices – the S&P 500 and the Nasdaq – also broke records. 

In addition, Shanghai’s SSE Composite Index increased by 0.7% and reached its highest level in more than a decade. The boost was linked to Beijing stating it would focus on chips and AI to achieve technological self-reliance, which led to stocks in this sector rising. 

UK

In October 2025, the Office for National Statistics (ONS) reported in the 12 months to September 2025, inflation was 3.8% – stubbornly remaining above the Bank of England’s 2% target. 

The International Monetary Fund increased its 2025 UK inflation forecast to 3.4% (up from 3.1% in April), saying the UK was set to have the highest in the G7.

Official figures estimate UK GDP increased by just 0.1% in August. The report suggested there was no service growth, which may reflect business caution ahead of the upcoming Budget. 

Data from the ONS shows the government borrowed £99.8 billion between April and September 2025. This is the largest sum borrowed since 2020 and is £7.2 billion more than the Office for Budget Responsibility forecast in March 2025. The news will add further pressure to the chancellor ahead of the Budget, which will take place on 26 November 2025. 

Trade data released in October 2025 was also poor. According to the Guardian, the trade deficit widened with exports to the US and EU falling by around £700 million and £800 million respectively in August 2025. 

Readings from a Purchasing Managers’ Index (PMI) suggest that businesses may be taking a cautious approach in the lead-up to the Budget.

The S&P Global PMI found that sluggish demand led to a reading of 50.8 in September in the service sector. While the figure remains above the 50 mark that indicates growth, it’s a marked drop from the 54.2 recorded in August. 

Reuters reported the manufacturing sector shrank at the fastest pace in five months as factories were affected by subdued domestic demand and falling export orders. The reading of 46.2, which indicates contraction, was also linked to a cyberattack on Jaguar Land Rover that halted production and disrupted supply chains.

Europe

In August, the euro area hit the European Central Bank’s inflation target of 2%. However, the Financial Times reported it increased to 2.2% in September. 

S&P Global’s PMI, which tracks business activity, was positive. According to the Guardian, the eurozone private sector delivered a reading of 52.2 after rising at the fastest pace in 17 months. Businesses also recorded the strongest increase in new orders in two and a half years.

The EU’s two largest economies, Germany and France, reported sharply contrasting performances. Germany’s output growth reached a 29-month high. In contrast, France posted 14 consecutive months of decline amid political uncertainty. 

While the PMI data suggests businesses are confident, unemployment figures released by Eurostat indicate many firms are being cautious. Across the eurozone, unemployment increased by 0.1% to 6.3% in August, according to Eurostat. 

Highlighting the far-reaching impact of US trade tariffs, Switzerland cut its 2026 economic growth forecast to 0.9% against the 1.2% predicted in June 2025. The Swiss government noted that exports have been affected by tariffs, creating a ripple effect across the broader economy. 

US

According to the BBC, inflation in the US in the 12 months to September 2025 was 3%. The figure is slightly lower than expected and could add to the pressure the Federal Reserve is already facing from the US president to cut interest rates. 

S&P Global’s PMI data for the US service sector fell to 54.2 in September but remained in growth territory.

However, a survey conducted by recruitment firm Challenger, Gray & Christmas and reported by Bloomberg suggests that business uncertainty may be causing firms to halt hiring plans. In the nine months to the end of September 2025, 205,000 fewer jobs were created when compared to the same period in 2024. 

Asia

According to Reuters, Takaichi, Japan’s new prime minister, could be welcome news for investors. She is expected to embrace government spending, lower interest rates, and adopt a looser approach to monetary policy than her predecessor. It’s hoped that this will encourage businesses to invest and support economic growth.

According to the Guardian, while China’s GDP growth of 4.8% year-on-year between July and September 2025 might seem high compared to other economies, it’s the slowest pace recorded in a year. In addition, hopes that the economy could reduce the impact of tariffs by moving away from exports to domestic consumption were tempered when retail figures remained weak. 

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

An estate plan sets out how you’d like your assets to be managed and distributed during your life and when you pass away. It often involves thinking about difficult topics, such as your funeral preferences or who you’d like to receive heirloom possessions. 

Once you’ve created an estate plan, it can be tempting to put it to the back of your mind. 

However, both you and your loved ones could benefit from discussing the contents of your estate plan. While these topics can be challenging and emotional to bring up, they could be a valuable way for you and your family to align on your understanding and expectations.

Here are three conversations you might want to have with your loved ones about your estate. 

1. How your assets will be distributed when you pass away

Many people decide not to share how their estate will be distributed when they pass away. According to a September 2025 article from FTAdviser, 36% of UK adults don’t know what their parents’ inheritance plans are. 

There are several reasons why you might choose to discuss the contents of your will.

One key reason is that it can help your loved ones effectively plan their own long-term finances. Understanding your intentions may help them make informed decisions, although they should still base long-term plans on their own financial circumstances.

For example, if your child is expecting a substantial inheritance, they might plan to rely on it for retirement rather than contributing to a pension. If the expected inheritance doesn’t materialise, they could face hardship later in life. By being aware of your wishes, they could take steps now to ensure they’re able to retire comfortably. 

Another reason to have an open discussion is that it could reduce the chance of your will being contested.

An April 2025 article from Today’s Wills & Probate noted there was a 5% increase in contested wills reaching the courtroom between 2022 and 2023. 

Speaking to your loved ones now gives you a chance to explain your wishes, reduce the risk of someone feeling blindsided, and address potential disputes.

2. Your Inheritance Tax position 

If your estate may be liable for Inheritance Tax (IHT), it can be valuable to discuss the potential bill and any steps you may have taken to mitigate it – especially if a family member will act as your executor.

Loved ones may be uncertain about IHT and how it might affect their inheritance. Having a discussion now about your IHT position could put their mind at ease. 

Your chosen executor will be responsible for handling your estate, including selling assets, such as property or investments, and reporting the value of your estate to HMRC. They will also be responsible for paying IHT on behalf of the estate. Consequently, gaining a clear understanding of your tax strategy could make the process less stressful and ensure that any steps you’ve taken to reduce the bill aren’t overlooked. 

3. Your wishes if you lose mental capacity 

Your estate plan isn’t only about how you’ll pass on assets, but how you’d like your affairs to be managed if you’re unable to oversee them later in life.

Thinking about losing mental capacity can be emotional, but talking about your wishes can provide your loved ones with valuable guidance. 

As part of your estate plan, you might give someone you trust Power of Attorney (POA), which would give them the power to make decisions on your behalf.

There are two types of POA, covering financial affairs and your health and wellbeing. You might want to talk to loved ones about topics like:

• Your preferences if you need care later in life
• Where your assets are held and how they should be managed
• Under what circumstances you would prefer to receive life-sustaining treatment. 

Your financial planner can help you tackle estate planning conversations

You don’t have to tackle these difficult conversations alone. Sometimes, having an impartial third-party present could be useful. 

For example, we can be on hand to answer your family’s questions about acting as an attorney, managing an inheritance effectively to reflect their goals, or understanding how assets will be distributed to minimise potential disputes. 

While having discussions about your wishes for later in life or when you pass away can be challenging, they can provide clarity for both you and your family. Please get in touch if you’d like to talk to us about your estate plan. 

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority doesn’t regulate will writing, Power of Attorney, Inheritance Tax planning or estate planning.