With the General Election fast approaching, there’s a lot of talk about the potential outcomes, weighing people weighing up the pros and cons of Labour versus the Conservatives. A lot of people are understandably focusing on changes to policies and leadership, but there’s another key aspect that often gets overlooked – finances. It’s important to know how the results of the General Election could impact your personal finances, including savings and ISAs.
4 Ways Your Finances Could Be Impacted by the General Election
- The State Pension – A lot of people are relying on the State Pension, and both Labour and Conservatives support it, but they are approaching it in different ways. With younger generations feeling the pressure of being responsible for the rising cost of the State Mention, many in the 18 to 34 age group are likely to vote for a party that’s pledging to help them. Whoever wins the election, will have to focus on reviewing the system and finding a way for people to effectively plan for their future.
- Savings – With the Bank of England pausing the base interest rate in light of the General Election, the savings market is now fixed for the next few months. This could be beneficial to those with savings, because it could mean that saving rates aren’t cut, resulting in savers continuing to earn higher rates of interest for longer than they would have otherwise.
- Lifetime Allowance and Pension Taxes – There’s a lot of misinformation and confusion about the Lifetime Allowance (LTA) at the moment, and it’s hoped that the General Election will bring a solution to the forefront. The Conservatives got rid of the LTA, but Labour have said that they want to bring it back. With people looking for clarity on the matter, the result of the General Election could send things in two different directions.
- ISAs – There’s been a lot of talk about British ISAs recently, but it’s unclear whether Labour’s thoughts align with those of the Conservatives, and whether the British ISA will be pushed through if they win the General Election. This ISA – which is a new ISA, with a separate £5,000 on top of the existing annual allowance – is designed to provide new tax-free savings for those wanting to invest, whilst also supporting UK businesses.
As you can see, the General Election could mean big things for your finances, but it doesn’t mean that you need to put a stop to your debt collection efforts. At Cobra Financial, we know how important it is to recover funds that are rightfully yours, which is why we work tirelessly to provide debt collection services to businesses and individuals in the UK. If you need help – whether that’s locating a debtor or encouraging a debtor to set up a repayment plan – you have come to the right place. Get in touch to find out more.
