Accountants are taking advantage of the Chancellor’s bleak budget
The doom and gloom highlighted by Rachel Reeves may have damaged confidence in the run-up to the Budget, but it has proven to be a boon for accountants.
Figures from the Office for National Statistics (ONS) show that a rush from businesses and households for advice ahead of likely tax rises was one of the main drivers of the economy over the summer.
According to the ONS, gross domestic product (GDP) rose 0.2 percent in August, after two months of stagnation.
Some experts said the situation would have been stronger if the chancellor had not talked about the economy and threatened tax increases.
But half of the growth came from so-called ‘professional, scientific and technical’ activities.
Boost: A rush from businesses and households for advice ahead of likely tax increases was one of the main drivers of the economy over the summer
Much of that was due to a 4.3 percent increase in “accounting, bookkeeping and auditing” output. That contributed 0.05 percentage points, or about a quarter of the monthly growth.
Ashley Webb, British economist at Capital Economics, said: “That may be due to people and businesses getting their finances in order ahead of possible tax rises in the budget.”
Reeves’ warnings of tax rises have fueled fears she will target capital gains tax (CGT), pensions or inheritance tax.
An increase in CGT could hit owners of second homes or other UK assets. And the possibility of the tax-free lump sum cap on withdrawals from pension pots being reduced has also prompted savers to seek advice.
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