John Healey’s budget offered a ‘sting in the tail’ for savers by raising tax rates but there are ways to ease the pain
Savers were both winners and losers in Wednesday’s budget. In his first outing as chancellor, John Healey dropped a plan to cut the cash Isa limit for under-65s but surprised everyone with an extra tax charge on savings and property income. His predecessor, Rachel Reeves, had already announced a plan to increase the income tax rates for savers and landlords that was due to take effect in April 2027. But Healey went further, adding an additional two percentage points to each of the rates.
Jason Hollands, managing director at wealth manager Evelyn Partners, describes the higher rates as a “sting in the tail” for savers.
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