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Money expert shares ‘what really matters’ for Brits’ pockets post-election | Personal Finance | Finance

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After Labour’s landslide victory, there’s still much that’s unclear about their plans and policies.

However, one money expert summarised what we do know and just how it’ll affect household budgets in real terms.

Finance expert Peter Komolafe first explained some of the changes Labour has already announced will see a major shift in three crucial areas for household finances: taxes, vat and national insurance.

One of the most publicized manifesto promise was the plan to remove VAT tax exemptions from private school fees, a change reportedly set to be implemented next year.

This is will push up the cost of private school fees with the extra revenue aimed at recruiting new teachers.

Income tax rates will remain frozen until 2028, continuing the previous Tory policy but on a groundroots level, Peter explained that this may not sound as positive as people believe: “In effect, this acts as a stealth tax, gradually pushing more people into higher tax brackets as their incomes rise due to pay increases and other factors.”

“According to the Office of Budget Responsibility, these measures are expected to create 3.2 million new taxpayers, 2.1 million new higher-rate taxpayers, and 0.35 million new additional-rate taxpayers.”

Lastly, in some “great news for the working individual”, Labour is sticking to the National Insurance rates set by the Conservatives. But amid these changes, Peter highlighted “what really matters” is the “unrealistic promises” and the crucial details Labour is yet to disclose.

He explained: “The Institute for Fiscal Studies has indicated that the next government will need to raise taxes, increase spending, and reduce public spending to achieve their plans. This was true regardless of who won.

“Now that the election is over, I expect these promises to be broken, leading to all three of the above actions,” because of this, the finance expert urged households to take control of their finances as soon as possible.

He advised: “Financial management, budgeting—whatever you call it—is going to be crucial. Mastering this skill will help you avoid debt, which can significantly impact your finances and future financial prospects.

“Budgeting may not be enough, so increase your income. There’s only so much you can do to cut costs; sometimes it’s easier to focus on maximizing your earning potential. I believe everyone has something to offer that can generate additional income. We all have passions that we hope could one day pay our bills.”

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