An ESG, Ethical Social Governance, Budget? 

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Published on
4th March 2021

Perhaps, certainly the new Green Bond will be issued via NS&I, who have had some negative press coverage in recent months due to their customer service levels, in the Summer is a step in that direction. As yet, there are no details as of the amount savers can invest, what projects it will be backing or the rate of return, however.  Alongside that the changes to the Bank of England mandate to include getting to net zero carbon, as well as controlling inflation, the additional expenditure into the likes of offshore wind farms, the Green Infrastructure Bank based in Leeds & the like are surely worth considering in any future structuring of your investment strategy within the UK elements.

Largely speaking, just like the recent weather it was a case of freezing and standing still.  So the major tax allowances, & rates, remain unaltered across Income Tax, CGT (Capital Gains Tax) & IHT (Inheritance Tax) as did the annual ISA allowance at £20,000 per person.

As for pensions, there is work done to be done that will allow Pension funds to invest in more early stage technology, an Enterprise Scheme for pension funds as it were, again we await more details of what this means, additional tax breaks perhaps?  Two things that are certain is that the Lifetime Allowance for pension funds has been frozen at £1.0731m and the oft mooted reduction in higher rate tax relief has not happened, a small short term mercy perhaps?  The latter, and the CGT rate for that matter, I suspect remain on the table for when the economy is on a better footing, so perhaps make hay while the sun still shines?

Of course with the freeze to the Pensions Lifetime Allowance the remaining protections, 2016, may be of interest to more people as a way of protecting their pot from the tax raid, assuming they haven’t disappeared in the fine print!

As ever, the devils is in the detail and I’m sure that once we get the fine print there may be other areas to address.  Certainly, some of the figures around the debt we as country have taken on are eyewatering and the direction of travel towards balancing the books to some degree was explicitly outlined.  Well, maybe just raise a glass this evening to bullets dodged rather anything else on the personal side?  Afterall that duty remained frozen as well!

Jerry Sisk

Jerry Sisk, Financial Planner

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