Just 2% of financial advisers are confident in the UK government’s economic policy agenda over the next 12 months, new research from Unbiased Pro has revealed.
The study, conducted ahead of the Autumn Budget, found that 57% of advisers actively lack confidence in the government’s economic direction.
This widespread uncertainty appears to be driving client demand, with 36% of advisers reporting an increase in enquiries ahead of the Budget.
In contrast, only 19% reported a decrease in demand.
However, advisers are bracing for the impact of the chancellor’s announcements. One in five (23%) expect the Budget to increase complexity or their compliance burden, while only 13% believe it will create new opportunities for advice and growth.
The research, which surveyed over 100 advisers, highlighted that “tax uncertainty” is the biggest economic challenge currently facing clients (43%), followed by “new Budget policies” (26%).
This is reflected in the main topics clients are bringing to discussions, with tax planning (36%) and retirement planning (28%) topping the list of concerns.
When asked which policies were most likely to affect their clients, changes to tax-free pension withdrawals and tax relief were the primary concern (24%).
This was closely followed by potential reforms to inheritance tax (22%) and changes to property taxes or national insurance (17%).
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Despite the low confidence in government policy and worries over complexity, the vast majority of advisers (93%) said they feel prepared to advise their clients on any potential changes.
Matt Cockayne, chief revenue officer at Unbiased Pro, said: “Advisers are clearly bracing for impact ahead of the Autumn Budget, with many anticipating increased complexity and compliance demands.
“While confidence in the government’s economic agenda remains low, advisers continue to play a vital role in helping clients navigate uncertainty.
“Their preparedness and resilience underscore the importance of accessible, high-quality financial advice, especially in times of change.”
