FTSE chiefs hit out at ‘damaging uncertainty’ ahead of the Budget

Core Viewpoint - Concerns regarding potential changes to pension tax rules in the upcoming Budget are creating significant uncertainty in the pensions industry and impacting the property market [1][2][6]. Pensions Industry - FTSE executives have expressed that uncertainty surrounding Rachel Reeves's Budget is detrimental to the pensions sector, with fears that tax-free lump sums for pensioners may be reduced [1][2]. - Michael Summersgill, CEO of AJ Bell, highlighted that speculation over pension taxation is causing instability for customers and advisers, which is detrimental to market confidence [2][6]. - A significant withdrawal of £70.8 billion from pension pots occurred in 2024, indicating a rush by savers to access funds before last year's Budget, with similar trends observed currently [3]. Property Market - Guy Gittins, CEO of Foxtons, attributed a sharp decline in home sales in London to the uncertainty surrounding the Budget [2][6]. - Foxtons has warned of a steep slowdown in house sales, further emphasizing the negative impact of Budget uncertainty on the property market [6]. Investment Management - Increased anxiety among savers is leading to a surge in demand for professional advice from investment managers, as indicated by Rae Maile from Panmure Liberum [5]. - AJ Bell reported administering over £100 billion in assets, with over 100,000 new customers joining its investment services in the past year, reflecting a growing need for guidance amid uncertainty [5]. Fund Management - Schroders announced a 5% increase in assets under management, reaching nearly £817 billion, while St James's Place reported net inflows of nearly £2 billion, bringing its total to a record £212 billion [4].