Mini Budget – September 2022 (Part 1)

• The government will bring forward draft regulations to remove well-designed
performance fees from the occupational defined contribution pension charge cap,
ensuring that savers benefit from higher potential investment returns

National Insurance
• Reverse of the recent rise in National Insurance (NI) from 6 November
• Workers and employers have paid an extra 1.25p in the pound since April
• New Health and Social Care Levy to pay for the NHS will not be introduced

Corporation tax
• Cancel rise in corporation tax which was due to increase from 19% to 25% in April

Income tax
• Cut in basic rate of income tax to 19% from April 2023
• Government estimates 31 million people getting £170 a year more
• Currently, people in England, Wales and Northern Ireland pay 20% on any annual
earning between £12,571 to £50,270 – rates in Scotland are different
• 45% higher rate of income tax abolished
• One single higher rate of income tax of 40% from April next year

• Rules around universal credit tightened, by reducing benefits if people don’t fulfil job
search commitments
• Around 120,000 more people on Universal Credit to be asked to take steps to seek
more work, or face having their benefits reduced
• Jobseekers over 50 to be given extra time with work coaches to help them return to
job market


2008 – 2022

This month we celebrate 14 years since Trafford and Houghton started.

The success of Trafford and Houghton has been made possible thanks to our vision, our committed staff and loyal customers.

Thank you for being part of the story so far.

Risen by £728 million and still rising

The IHT Boom

You can’t open a newspaper without reading about the return of inflation.

An article caught my eye recently. It contained some figures which I think have important implications.

In the year to April, an extra £728 million was collected in inheritance tax (IHT) compared to the previous 12 months.1  Not an insignificant increase!

With inflation running at a 40-year high2 and IHT allowances frozen, receipts will only climb further. Families are forecast to pay £37 billion in IHT over the next five years.3

Some clients may be dragged into the IHT net as the value of their home and assets increase so it is important to prioritise estate planning.

1HMRC tax receipts and National Insurance contributions for the UK, HMRC, 26 April 2022
2Consumer Price Inflation, Office for National Statistics, May 22
3Economic and fiscal outlook, Office for Budget Responsibility, March 2022

*Octopus Investments June 2022


This month we celebrate 13 years since Trafford and Houghton started.

It has been quite a ride and the last 15 months have been a testing time for all of us.

The success of Trafford and Houghton has been made possible thanks to our vision, our committed staff and loyal customers.

Thank you for being part of the story so far.

Exam Success

Congratulations to our Apprentice Josh on passing the RO6 Financial Planning Practice exam. Josh has now completed the Diploma in Financial Planning!

Well done Josh!

The Longest January

So we finally got through January.

With each day happier, brighter times draw nearer.

I recall seeing a meme on social media

30 days hath September

April, June and November

All the rest have 31

Apart from January which has about 77.

It certainly felt like that.

Whilst markets have slowed somewhat in January most of our portfolios managed to hold onto the gains made in the latter part of 2020.

One of the questions asked most often in January was how had the investments produced a positive return over the last 12 months despite the pandemic.

Well, on the whole clients didn’t panic so instead of wanting to sell assets at the worst possible time, they knew to follow the rules of investing.



Avoid Greed

Avoid Fear.

Some portfolios showed big losses between February and March last year but managed to bounce back remarkably quickly as the year went on.

Secondly we are pleased with how the recommended investments have performed, particularly given the backdrop of doom and gloom surrounding Covid.

Then there’s the money injected into the system.

As advisers we try to meet with fund managers as often as we can. The meetings nearly always throw up a nugget, a gem, something that sticks in your mind.

This one is (to me) mind blowing.

In 2020 the amount of money injected into the system by the central banks amounted to $1.2 billion dollars……….. per hour.

And there is no sign of this stopping!  

An interesting blog about a little bit of interest being of interest and the interest in the interest rate rising

In these unprecedented times, people are looking for alternatives to interest from traditional bank accounts given the current bank of England base rate of 0.1%.

However, many people are still holding out for interest rate rises.

I recall in a previous life (at a well known Insurance Company) inflation was referred to as the silent embezzler.

Put simply, £10,000 in the bank today will generally buy you less than it would say, 5 years ago.

So the absolute minimum for any money, is to grow in line with inflation.

That however, is easier said than done in a deposit account when the rate of inflation is significantly higher than The Bank of England base rate (and the vast majority of deposit rates).

So, when do we see interest rates rising, returning to normal?

I used to say at meetings that interest rate rises were always six months away, a bit like the pub which advertises free beer tomorrow.  Neither ever seem to arrive.

After the financial crisis of 2008-09, what appeared to be temporary cut in the bank of England base rate, saw the rate drop to 0.5%. In the twelve years since, the rate has not once risen to 1% and currently sits at an all time low of 0.1% with talk of negative interest rates a real possibility!

Can interest rates rise? Given the amount of borrowing by central governments around the world, is this a realistic possibility?

Another astounding quote heard in financial circles in the last few weeks.

Should the cost of borrowing increase by 0.5%pa, the additional annual cost to The US Treasury would be equal to the Country’s entire military budget for the year.

I guess the interest rate rises are still 6 months away!



Our Christmas opening hours are as follows:

Wednesday 23rd December 2020: 8:00am – 14:00pm

Thursday 24th December 2020 – Friday 1st January 2021: Closed

Monday 4th January 2021: 8.00am – 17:00pm (normal office hours)

We would like to wish our clients a Merry Christmas and a Happy New Year.

Thank you for your continued support.