Tier One Capital

Paul Blight, Head of Wealth Management at Tier One Capital, said: “The chancellor is in the fortunate position of having more room for manoeuvre at this budget than he had thought likely. There is around £30 billion more to spend than he thought. This offers an opportunity. But making the most of it will require a delicate balance between appeasing factions of his own MPs and acting in the national interest.

“Those who had supported Liz Truss will hope that he is able to follow through on tax cuts that can help their core affluent voter base in the South of England. Yet when inflation is running hot more tax cuts threaten to exacerbate that problem and will not get support to those struggling the most.

“His other option is to use the headroom to settle public sector pay disputes and provide financial support to families which can genuinely grow the supply-side of the economy. For example, adding significant support with childcare costs for under twos could enable many parents to return to the workplace early, alleviating the labour shortages which are holding back British business.”

ENDS