The phrase ‘feel the heat’ could be applied both to the weather so far this summer and domestic and global politics. Following the Chancellor’s Spending Review on 11 June, the pressure is on the government to fund its investment commitments within its own financial rules. Meanwhile, developments on the world stage continue to concern and influence short- and long-term decision making.

One area of life that affects us all is ensuring we have made adequate provision for when we stop work. The Work and Pensions Committee reported on the success of employer auto-enrolment pension arrangements in 2024 but concluded that contribution levels are too low to match individuals’ expectations for retirement. Our feature in this edition of the newsletter considers strategies for sustainable pension investment, whatever your stage of life. It is never too late, or too early, to make a difference to your pension fund.

There’s now just under a year until HMRC’s Making Tax Digital (MTD) programme starts to become mandatory for some taxpayers. The project to automate tax reporting should reduce opportunities for errors and omissions in business receipts and tax calculations. From April 2026, the self-employed and landlords with qualifying income over £50,000 will need to have MTD-compliant software for reporting their finances, so if you are likely to be affected, now is the time to make sure you know what is required in the new regime.

Our other stories in this edition include: 

• The lessons of ‘Liberation Day’ – President Trump’s power to affect the stock market by announcing erratic policy measures may appear to create opportunities for quick financial gains, but ultimately, the markets recover, and investors could lose out trying to predict how fast that will happen.

• Funding for long-term care –An independent commission on long-term care will report initial findings in 2026, but nothing will be due for implementation until 2036, leaving another generation to fund their own personal care costs. 

• Wedding bells and wedding bills – The number of couples saying ‘I do’ has bounced back strongly after the Covid-19 pandemic, despite a significant rise in the costs of a wedding or civil ceremony. If you are planning to help pay for your child’s big day, consider starting to save as early as possible.

Back on the tightrope

You may recall the mythical Pushme-Pullyou animal (or Pushmi-Pullyu in the original) from Dr Doolittle. With two heads facing opposite directions, it epitomises trying to balance conflicting forces. Following the Chancellor’s Spending Review in June, in which Rachel Reeves laid out an ambitious programme of capital spending and investment while sticking to self-imposed rigid fiscal rules, the image feels apt. A backbench rebellion against proposed benefit cuts coincided with confirmation of additional defence spending at the NATO summit in late June. With the push coming from President Trump on increased contributions across the NATO allies, and the pull from the raft of other domestic public spending commitments and demands, it seems the run-up to the autumn Budget will be fraught with difficulty.

One of those commitments was the government’s pledge to maintain the pensions triple lock in its 2024 election manifesto. But the State pension alone is not enough to pay for the retirement costs of older age. Our feature in the latest edition of our newsletter highlights recent research that found many, particularly in the younger generations, are likely to find that their pension income won’t meet their lifestyle costs in retirement. We look at the different investment strategies you should pursue to make sustainable pension contributions throughout your working life. 

The transition into retirement is today less precipitous than it once was, with many people reducing their hours more gradually or continuing with part-time jobs. Once you have stopped working completely, your costs and spending patterns will shift. One report found homeowners are likely to spend more money initially in retirement, perhaps on improving their property as they spend more time at home, but then those costs reduce as time goes on. How you access your retirement income is a complex decision. Some find an annuity is the right solution for their needs, while others may prefer flexible drawdown to pay for one-off, higher expense bills. Regular reviews are crucial to ensure your decisions match your needs.

Meanwhile, the self-employed and property investors with qualifying income over £50,000 are the latest group to be affected by HMRC’s Making Tax Digital project. From April 2026, they will need to use automated tax reporting software that connects self-assessment taxpayers’ accounts straight to HMRC. If you think you could hit that threshold, you should be preparing now, with the next phase including those with qualifying income over £30,000 coming in from April 2027.

We hope you enjoyed our Summer 2025 newsletter and found the articles useful. 

The Chancellor’s commitments to spending and investment outlined in her Spending Review in July, coupled with government turmoil around benefit cuts, highlight how tricky the latter half of the year is likely to be in the run-up to the autumn Budget.  

We’ll be back in touch in September as anticipation rises for the next big fiscal event of the year. In the meantime, if our newsletter has prompted any questions about your plans, or if there is anything we can help you with, do get in touch. We will be pleased to hear from you.

Godiva Wealth Management is here to help. Our team of experts can provide tailored guidance and support. Contact us today to discuss your financial goals.

---

Godiva Wealth Management Limited, Registered in England and Wales No. 06592525

Registered Address: Godiva Wealth Management Ltd.
7 Clarendon Place, Royal Leamington Spa, Warwickshire, CV32 5QL

EMAIL: info@godiva-wealth.management
PHONE: 01926 298567

Authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register No. 832613 at https://register.fca.org.uk/.

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.

In particular, the information does not constitute any form of advice or recommendation by Godiva Wealth Management Ltd and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.