🟣🟢 Rachel Reeves made a speech...

Happy Sunday…👋

You probably didn’t catch Rachel Reeves’s Mansion House speech on Tuesday.

I don’t blame you. It’s the kind of political event that gets the financial press excited but usually passes most people by.

Still, it’s worth paying a bit of attention to this one.

It quietly signalled some pretty big shifts in the way the government wants us, as individuals, savers, and business owners to use our money.

If you run a business, have an ISA, or even just want to make your cash work harder, this could affect you.

That said it doesn’t mean you need to rush off and change anything.

In fact, one of the main reasons to have a proper financial plan is so you don’t feel the need to react every time the government tweaks the rules.

More on that in a moment. But first, what is Rachel actually changing?

A gentle nudge out of cash.

The big focus of Reeves’s speech was about getting more people to invest.

From next April, a new type of investment ‘Long-Term Asset Funds’ will be allowed inside Stocks & Shares ISAs.

There’s also a campaign coming to encourage people to stop hoarding cash and start building wealth.

What are Long term Asset Funds (LATFs)?

LTAFs are investment funds that put money into big, illiquid, long-term projects.

Think infrastructure, private equity, commercial property, or renewable energy developments.

It’s less like buying company shares and more like funding the building of a wind farm.

You tie your money up for longer, and in return, there’s the potential for higher returns. But there is also more complexity and less flexibility.

So why are they being encouraged inside ISAs now?

Because the government wants more of the £300bn+ cash that’s sat in cash ISAs to flow into parts of the economy that actually build things.

They see this as a way to boost growth, attract capital, and reduce reliance on public spending.

And that might make perfect sense at a national level.

But for individual investors? Not necessarily (sorry Rachel).

These funds won’t suit everyone.

They're less transparent, harder to access quickly, and carry very different risks to your standard equity fund.

For most people moving out of cash ISAs, they’re unlikely to be the right first step.

If someone is looking to start investing properly, there are far simpler and better diversified options available.

Deregulation is back on the menu

Reeves also announced a rollback of some of the post-2008 financial rules, making it easier for smaller banks to lend, loosening mortgage affordability rules, and helping businesses raise capital.

According to Reeves, the aim is to free up capital for investment and growth. And that could help stimulate the economy.

But several respected commentators, including former regulators, are urging caution. The head of the FCA has even warned that the government needs to clearly set out its risk appetite, or risk repeating past mistakes.

Because the truth is, deregulation works until it doesn’t. It often looks like progress in the short term until something goes wrong, and we remember why the rules were there in the first place.

This time, the changes are being described as “measured” and “targeted.” They’re not tearing up the rulebook.

Let’s hope they know what they’re doing…

So, do you need to act?

Probably not. And that’s the point.

A well-built proper financial plan gives you the freedom not to react every time the government changes course.

But if it’s been a while…

If your ISA is heavy in cash, or you haven’t looked at your business finances since before the election, this might be a good moment to check in.

Not because something’s broken but because the conditions are changing. And small, well-timed tweaks are often what keep things on track.

And if you’d like to run something by me you know where I am 👍

😎 THAT’S IT FOR THIS WEEK!

If you’ve reached a point where you need help with your financial stuff, would like to know more about our services, or have any questions at all, do ping me a reply.

Hilary 😎

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