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Ahead of Budget, investors and savers "shouldn’t panic or make any rash decisions"

ended 24. November 2025

FINANCIAL experts have advised investors and savers to not panic and make rash decisions ahead of, or after, the Budget, as they could “lock in losses”. Instead, they say “the smartest move is to stay calm”.

Philly Ponniah, Chartered Wealth Manager at London-based Philly Financial, advised: "Budget week always feels dramatic, but for most people the smartest move is to stay calm. Markets often jump around on headlines then settle once the details land.

"If your portfolio already matches your risk level, you usually gain more by holding your nerve than trying to second-guess policy shifts. If gilt yields spike or the Pound wobbles, remember these moves are often short-lived.

“Long-term investors don’t need to act fast because reacting in panic is how people lock in losses. The only time to take action is if the Budget changes your personal tax position, not because prices flicker on the day.”

Antonia Medlicott, Founder at London-based Investing Insiders, agreed: "In these final two days before the Chancellor speaks, people shouldn’t panic or make any rash decisions.

"Instead, they should focus on the fundamentals: ensure their portfolio is adequately diversified, make sure they’ve made full use of their ISA allowance, understand what they hold in their pension and ensure they have an emergency cash account that's receiving an above-inflation rate of interest.

"If you usually put more than £12,000 into a cash ISA each year, there's a high likelihood you could need to find a new home for the excess, as Rachel Reeves is rumoured to want to lower the annual allowance from £20,000.

“So, if you've been nervous about switching over to an investment ISA, now is the time to do some research into providers. You may find that it's not as risky, difficult, or as expensive as you had previously been fearing.”

Scott Gallacher, Director at Leicester-based Rowley Turton, also urged people to sit tight: "Most investors shouldn’t do anything differently during Budget week. The key point to remember is that almost nothing the Chancellor announces will move global stock markets. The UK simply isn’t big enough to shift the price of international assets.

"The only areas likely to react meaningfully are the Pound and gilt yields. If sterling falls, that’s actually good news for most investors in the short term, as the value of their overseas holdings tends to rise in Pound terms.

“So for everyday savers and retirees, the right approach during Budget week is almost always to sit tight rather than make knee-jerk decisions.”

Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said Budget week is a time to be measured: "Time in the market beats timing the market. Unless your personal circumstances, such as age, liquidity needs or tax situation, mean the Budget directly affects your financial plan, measured responses beat knee-jerk reactions in most cases.

"For most investors, do nothing. Markets have survived hundreds of Budgets. If you're diversified and matched to your risk tolerance, sit tight. If yields soar or sterling falls, don't panic-sell gilts if you're long-term.

“A falling pound helps many investors as international equities and FTSE 100 multinationals benefit from sterling weakness. For sophisticated investors, watch for inheritance tax reforms such as taper relief and gifting rules, capital gains tax changes, property taxation and pension reforms.”

Samuel Mather-Holgate, Independent Financial Adviser at Swindon-based Mather and Murray Financial, advised: "Rachel Reeves is likely to raid your pension pot this week, while the tax relief of tax-free cash could get the chop as well as some smaller thresholds.

“If you’re making contributions into your pension, you may want to bring these forward and stuff your savings full of cash so you receive the current uplift before it’s made a potentially flat rate relief on Wednesday.”

5 responses from the Newspage community

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Editor
Philly PonniahVerified
Chartered Wealth Manager and Financial Coach at Philly Financial
Budget week always feels dramatic, but for most people the smartest move is to stay calm. Markets often jump around on headlines then settle once the details land. If your portfolio already matches your risk level, you usually gain more by holding your nerve than trying to second-guess policy shifts. If gilt yields spike or the Pound wobbles, remember these moves are often short-lived. Long term investors don’t need to act fast because reacting in panic is how people lock in losses. The only time to take action is if the Budget changes your personal tax position, not because prices flicker on the day.
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Editor
Scott GallacherVerified
Director at Rowley Turton
Most investors shouldn’t do anything differently during Budget week. The key point to remember is that almost nothing the Chancellor announces will move global stock markets. The UK simply isn’t big enough to shift the price of international assets. The only areas likely to react meaningfully are the Pound and gilt yields. If sterling falls, that’s actually good news for most investors in the short term, as the value of their overseas holdings tends to rise in Pound terms. So for everyday savers and retirees, the right approach during Budget week is almost always to sit tight rather than make knee-jerk decisions.
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Editor
Tony RedondoVerified
Founder at Cosmos Currency Exchange
Time in the market beats timing the market. Unless your personal circumstances (age, liquidity needs, tax situation) mean the Budget directly affects your financial plan, measured responses beat knee-jerk reactions in most cases. For most investors, do nothing. Markets have survived hundreds of Budgets. If you're diversified and matched to your risk tolerance, sit tight. If yields soar or sterling falls, don't panic-sell gilts if you're long-term. Rising yields mean lower prices today, but holding to maturity returns your principal. Exception: near-retirees with heavy gilt exposure facing sustained yield rises (50+ bps) may need gradual repositioning over days/weeks, not panicked trades. A falling pound helps many investors as international equities and FTSE 100 multinationals benefit from sterling weakness. For sophisticated investors, watch for inheritance tax reforms such as taper relief and gifting rules, capital gains tax changes, property taxation and pension reforms.
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Editor
Antonia MedlicottVerified
Founder & MD at Investing Insiders
In these final two days before the Chancellor speaks, people shouldn’t panic or make any rash decisions. Instead, they should focus on the fundamentals: ensure their portfolio is adequately diversified, make sure they’ve made full use of their ISA allowance, understand what they hold in their pension and ensure they have an emergency cash account that's receiving an above-inflation rate of interest. Judging by reports this morning, homeowners should also confirm which council tax band their property falls into. If you usually put more than £12,000 into a cash ISA each year, there's a high likelihood you could need to find a new home for the excess, as Rachel Reeves is rumoured to want to lower the annual allowance from £20,000. So, if you've been nervous about switching over to an investment ISA, now is the time to do some research into providers. You may find that it's not as risky, difficult, or as expensive as you had previously been fearing.
Copy

Editor
Samuel Mather-HolgateVerified
Managing Director & IFA at Mather and Murray Financial
Rachel Reeves is likely to raid your pension pot this week, while the tax relief of tax-free cash could get the chop as well as some smaller thresholds. If you’re making contributions into your pension, you may want to bring these forward and stuff your savings full of cash so you receive the current uplift before it’s made a potentially flat rate relief on Wednesday.