Commentary: Autumn Statement 2022

Commenting on today’s Autumn Statement, William Marshall, Chief Investment Officer – Hymans Robertson Investment Services (HRIS) says:

“The pound and government bond markets were fairly muted in the immediate aftermath of the Chancellor’s speech, however, both had rallied in the days leading up to the statement as the content of it became apparent."

“The all-important OBR forecast, which was conspicuously missing from the last statement, highlights the problems the Chancellor faced from a severely weaker economy’s impact on tax revenue. The fact that UK government bond yields have fallen so much since the height of the panic caused by September’s mini budget (about 1.2% down) may have given the Government a little more fiscal headroom than a few weeks ago but not enough."

“There is a risk that the Government is overcompensating and exacerbating the economic pain at a time where the Bank of England is already forecasting a drawn-out recession, and Advisors and investors should maintain a globally diversified portfolio to help mitigate impact in the medium-term."

“For Advisors, the announcement to cut relief on dividend and capital gains taxes will mean that tax efficient wrappers such as ISAs and pension schemes become more important than ever to their clients.”