PIMFA
23 September 2022
Fiscal Statement reaction from Liz Field, Chief Executive of PIMFA: “Inflation remains key problem facing households and the economy.”
Liz Field, Chief Executive of PIMFA, comments: “Few of us would envy the Chancellor today, faced with the difficult task of attempting to encourage economic growth in the face of the Bank of England warning the economy is probably already in recession, inflation running at just under 10% – and forecast to hit as much as 13% or 14% next year – and a cost-of-living crisis impacting almost all families. PIMFA hopes the measures announced by the Government today will help to counter the effects of these challenges on family finances, rebuild household financial resilience and realise a more prosperous future.
“The Government’s longer term growth target of 2.5% per year is welcome, as are efforts to support business, encourage inward regional investment and encourage further investment in small-to-medium sized enterprises such as the increased investment limits in, for example, the Seed Enterprise Investment Scheme. But obviously the impact of these measures will not be immediate and there will already be significant short-term pain for most average househlds before we see the economic growth the Chancellor hopes to achieve, have a real-terms impact on living standards.
“The Energy Price Cap, alongside the cuts in National Insurance, the scrapping of the higher rate of Income Tax and cut to the basic rate of income tax from April, will benefit better off households but may make little difference to the average household unless inflation can be brought under control far more quickly than is forecast. If these measures bring growth faster than expected the Government will be praised for putting the economy back on track but given higher borrowing costs and inflation running at its highest level in 40 years, the future remains mired in uncertainty.”
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Notes for Editors
About PIMFA – the Personal Investment Management & Financial Advice Association
- PIMFA is the trade association for firms that provide wealth management, investment services and the investment and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
- The sector currently looks after £1.65 trillion in private savings and investments and employs over 63,000 people.
- PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families to charities and pension funds, all the way to trusts and companies. Associate members provide professional services to the PIMFA community.
- PIMFA leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena. Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
- PIMFA has made numerous recommendations to the FCA regarding the Future of Advice, the Future of Supervision and the FSCS levy – read more.
- PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association since 1991 – read more.
- Further information can be found at pimfa.co.uk
For further information on this release or other press matters please contact:
Matthew West, PIMFA PR Manager – MatthewW@pimfa.co.uk, +44 (0)20 7382 0376 / +44 (0) 7843 903258
Sheena Gillett, PIMFA Communications & PR Director – sheenag@pimfa.co.uk, +44 (0)20 7011 9869 /
