Taxes and Expenses On the Up Next Year?

Brexit and other factors presently weigh heavily on the future of the economy. And with changing tides ahead, the ripple effect may reach right into your pocketbook. According to some observers, there’s no way UK residents will avoid higher taxation next year. Pointing to converging conditions, leaving little choice but raising revenue with new taxes, analysts don’t place the blame on Brexit uncertainty alone. Rather, a series of moves made by the government and an expensive spending climate for providing public services also point to higher taxes ahead.

As you work out the details of your personal budget, it pays to take some of your cues from the government and also to recognise overall economic performance, when working out figures for the coming year. Though higher taxes and living costs on the up aren’t necessarily good news for your finances, preparing for future financial challenges can help soften the blow.

Higher Bills Ahead?

In a recent Financial Times article, one analyst unpacked Phillips Hammond’s actions leading up to the fall budget. In them, Mr. Hammond seemed to signal that the nation’s borrowing may increase in the future.

It is thought the full impact of Brexit won’t be felt until next year, so it may not be central to the autumn budget. In fact, short-term tax gains in the budget could actually help families for the time being. But officials may in effect be using Brexit to explain phenomena for which it isn’t responsible. After the scheduled Brexit date of March, 29th, however, there’ll be no hiding from its true impact. At that time, larger, looming tax and borrowing questions will be resolved and austerity measures will be decided.

An IMF assessment ranked Britain poorly for its public finance balance sheet. It is believed higher taxes would not only increase the quality of public services, in some cases, but also slow the decline of existing schemes. Over time, privatization and partnerships have helped buoy the public sector. But expert analysis shows that these options have been exhausted, and future officials will not be able to count on these sources to ease financial pressure. With few options on the table, taxation presents the most likely solution to the UK’s future funding shortfalls, which means you may have less money to work with next year.

Personal Solutions for Rising Costs

The state of Britain’s precarious economic state is further illustrated by a general shift in policy and positioning. The country was once known for relatively low taxes, compared to the European continent. With rising costs plaguing public programs, Britons can no longer count on that distinction. At a time when money’s not available to expand public financial obligations, spending on national schemes for health care and general welfare continually stresses the national budget. Though it may be deferred and optimists can spin it in a positive light, Brexit and other economic realities will ultimately result in higher taxes for Britons in 2019.

When affordability suffers, short-term loans are available to hold you over until payday. The money is offered to qualified workers with good and bad credit, so you can review lenders and start the application process online, without undergoing an extensive background check. Once approved, loans are funded without delay, providing fast access to the short-term capital you need.

The economic landscape seems to change daily, with so many matters influencing government policy and consumer trends. Until Brexit’s resolved and the divorce is complete, it’s hard to predict what might unfold in the coming months. As the New Year beckons, some observers see higher taxes and increased expenses on the horizon for Britons.

Paul graduated in 2001 with a degree in Finance. Since then he has gone on to work for several of the UK's most well-known financial institutions.

An avid blogger and a huge football fan, Paul is here to guide you through the ins and outs of personal finance and perhaps save you some money in the process!

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