Uncertainty, confusion, and fear stemming from Rachel Reeves’ first budget in October 2024 are contributing to higher demand for advice from both existing and prospective clients, research from Flagstone has found.

The research, which surveyed UK financial advisers, found 53 per cent recorded more demand in additional services from existing clients.

While 55 per cent said they are seeing more demand from new clients.

Overall, 33 per cent said demand for ongoing advice has risen, and 60 per cent said clients value their advice “more than ever”.

Flagstone head of strategic partnerships, Claire Jones, said: “Access to common sense, plain English financial advice is needed more than ever.

“The government is making good on its pledge to increase the tax burden for higher earners around the country, and changes to tax policy are heavily trailed before being formally announced.

“With the Treasury not providing more clarity on these topics, this can give rise to concerns and confusion.”

Jones said advisers being “more front-footed” in the faces of financial uncertainty will help them show their worth to clients.

When asked to elaborate on the reasons driving the surge in interest and demand from clients, 41 per cent of advisers said the tax changes and rumours are causing confusion.
The renewed appetite from clients is not considered a passing trend as 92 per cent of advisers say their clients’ biggest preoccupation is with inheritance tax on pensions — a policy that is not scheduled to take effect for another two years.

Likewise, for 32 per cent of advisers, concerns surrounding the future Cash Isas are high among clients, and HM Treasury is not expected to provide more clarity on these for several more months.

Dyas Wealth Management partner, James Dyas, added: “Recent tax changes and ongoing speculation have significantly reshaped the financial advice landscape, impacting both clients’ concerns and the way advisers provide guidance.

“Many clients are increasingly worried about potential inheritance tax liabilities on pensions, and uncertainties surrounding the future of Cash ISAs. While these challenges are significant, they also present opportunities.

“These evolving priorities are prompting existing clients to seek more ongoing, comprehensive services, and helping more people to recognise the value of professional advice, leading to an increase in new enquiries and referrals.”