Spring Clean Your Finances: US tariffs, the Spring Statement and saving tax

This podcast isn’t personal advice or a recommendation to trade any investment. Investors are responsible for their own investment decisions. If you’re not sure what’s right for you, seek advice. Investments rise and fall in value, so investors could make a loss. Tax rules can change and any benefits depend on your personal circumstances.

Full podcast episode transcript

[0:08] Susannah Streeter: Hello and welcome to Switch Your Money On with me, Susannah Streeter – Head of Money and Markets here at Hargreaves Lansdown.

[0:14] Sarah Coles: And me, Sarah Coles – Head of Personal Finance.

[0:16] Susannah Streeter: Now, I don’t know about you, Sarah, but the rush of good weather we’ve had at the start of March has prompted me to do a bit of spring cleaning at our house – and it’s time for a big garden clear-out.

I thought I had removed all the rubbish from an 18^th birthday party late last summer, but I was wrong – it is amazing to find out what can lurk in the bushes!

[0:37] Sarah Coles: That sounds quite alarming – although I’m sure you just meant some empty cans of fizzy pop!

But, yes – this time of year is always a good time to spring clean – and your finances shouldn’t be overlooked. So, as the end of the tax year approaches, we thought we’d do a special spring-cleaning episode, looking into the tax-efficient opportunities you have right now – including an insight into pensions from our Head of Retirement Analysis, Helen Morrissey.

[0:58] Susannah Streeter: And we’ll consider some of the investments to watch out for in the coming tax year and beyond, and it’s great to have Matt Britzman – Senior Equity Analyst here at Hargreaves Lansdown – back on the podcast. And we’re also going to hear from our Head of Platform Investments, Emma Wall, on the funds which are on her watchlist.

[1:16] Sarah Coles: Plus, as the rumours start doing the rounds about the Spring Statement on March 26^th, we’ll help cut through the noise.

[1:21] Susannah Streeter: But, first, March has begun with some pretty fierce winds when it comes to global trade.

President Trump set off a fresh round of volatility when he confirmed his plan to impose 25% tariffs on imports from Canada and Mexico – and increase tariffs on Chinese goods coming into the US as well. This has led to a sharp sell-off on Wall Street, in the immediate aftermath and repercussions on global markets, as tit-for-tat retaliation ensued.

There will be some hopes lingering that negotiations could limit a further escalation

– but, so far, talks haven’t done the trick of finding a solution, with Trump saying there was no room for a deal – so finding a way out of this impasse does not look easy. The big risk is that the trade war will escalate.

As well as falls on equity markets, oil prices also fell back, amid worries about the effect of tariffs on the global economy and expectations that demand for energy will be lower if growth slows.

Despite the market turmoil that’s been set off – and concerns about the knock-on effect on growth – President Trump looks, for now, to be staying the course, claiming tariffs will redress trade imbalances and boost US manufacturing, forcing more companies to relocate plants and factories to the US.

But it has set off concerns about inflation, which has already showed signs of being stubborn. Prices in the shops are set to rise for millions of Americans – the US Central Bank – the Federal Reserve – has already warned about the risks of this, as US importers look at ways of passing on the higher costs of goods. But it may also affect costs for housebuilders too, given how reliant the sector is on Canadian lumber. The price of cars is also expected to rise, given the complex supply chains for US manufacturers stretching across Canada and Mexico. If essential goods rise in price, consumers will have less money to spend elsewhere in the economy, adding to US growth concerns, with consumer confidence already falling.

[3:34] Sarah Coles: Of course, it’s not just tariffs, but fractious international relations which have been making headline news, isn’t it?

[3:39] Susannah Streeter: Yeah – particularly the shocking clash between Trump, Vance, and Zelensky in the Oval Office at the White House. This has brought the need for Europe to increase collective security into sharp focus.

A show of cooperation among leaders in London has reinforced expectations that military budgets will swell in a new era of collaboration to counter the Russian threat. As far as the FTSE 100 has been concerned, the expectation of increased state spending on military capabilities has been helping to offset jitters about fraught geopolitics and US tariff concerns.

New highs were seen on the first day of trading of March, helped by a manufacturing snapshot in China coming in better than expected. However, with tariff threats from the US President coming into force, it’s taking some shine off the index. With its defensive nature – and given it’s also stuffed with consumer staples – it’s still likely to prove a draw with those wanting to stay diversified amid volatile markets.

[4:40] Sarah Coles: As speculation continues to swirl about the impact of US tariffs on the global economy, the rumour mill has also been griding here in the UK about what

could be in the UK government’s spending review at the end of March.

So, straight off the bat, we should say the Government has made it very clear that, with the Spending Review expected in June – and a big Budget just passed – the Spring Statement isn’t expected to usher in major changes. However, the Government may publish consultations into possible changes further down the line.

[5:05] Susannah Streeter: But, despite this, rumours have continued to grind on possible announcements, haven’t they?

[5:10] Sarah Coles: Yes – so the notion that something could happen to cash ISAs is still doing the rounds, with the idea that, by somehow restricting the money that can be added to cash ISAs, it might encourage more people to invest in stocks and shares ISAs instead.

It’s worth saying that this isn’t something the Government itself has ever said it’s considering, and is pure speculation. There are also serious flaws in the idea – not least that there’s nothing to say savers would make the switch. The existence of the cash ISA isn’t typically the reason they don’t invest. It’s often down to a lack of confidence in investing, which isn’t gonna be affected at all by tinkering with the ISA range. It means the most likely outcome would be diligent savers being exposed to tax.

It means there are other more appropriate solutions. One of them lies in the review of what’s known as the Advice Guidance Boundary – which is going on at the moment, and is looking into how to guide people to good financial decisions without having to pay for personal advice.

It will likely mean businesses can offer more targeted support, which will include helping people understand their appetite for risk and when to move long-term cash savings into investments. That can make a huge difference to people who don’t feel confident investing right now.

Of course, when we’re talking about saving and investing, it’s important to bear in mind that the real value of cash savers can be eaten away by inflation over the long-term. Over a period of five years or more, investments usually give a higher return compared to cash savings. However, investments go up and down in value, so there’s always a risk you can get back less than you put in.

[6:26] Susannah Streeter: Another rumour that’s emerged more recently is that there could be an extension of the freeze on income tax thresholds, possibly to 2029 or 2030.

[6:41] Sarah Coles: Yes – the stealthy squeeze on our pockets would manoeuvre around the manifesto promise not to raise taxes on working people, by focusing on thresholds rather than the headline rate. It also guarantees you won’t be left with less money than today – just that more of any pay rise will be taken by the Government. And, yet, it feels like a crafty way to hike how much tax we pay – while still being able to say that taxes haven’t risen.

[7:01] Susannah Streeter: So, what does this mean for people?

[7:03] Sarah Coles: The key is not to worry about the rumours, especially given that the Government hasn’t said anything about these things. Instead, focus on the moves you can make now which you won’t regret even if there are no major changes in the Statement.

And, with this in mind, it’s worth mentioning that the end of the tax year is approaching on 5^th April. This year, you have a £20,000 ISA allowance, which you can save or invest – but, if you don’t use it before the end of the tax year, you’ll lose that year’s allowance for good.

If you were already going to open a cash ISA – or top up in the current year – then feel free to go ahead. There’s no rush, but doing it fairly soon might help bring some peace of mind. Plenty of people are doing this, which has kicked off the start of the cash ISA season early this year.

If you’re planning to open a stocks and shares ISA instead – or to use part of your allowance for investment – there’s no need for any of this speculation to change your plans. Most people should have a balance between cash for the short-term and investment for the long-term – and it’s really important not to let this speculation throw you off track.

In terms of income tax, you can pay into a pension – such as a SIPP – and receive tax relief at your highest marginal rate – claiming higher rates of relief through your tax return. It won’t leave you with more money in your pocket today, but will put the full value of every pound into your pension for later.

[8:08] Susannah Streeter: Of course. this is a key time of the year for pensions – so it’s a good time to bring in Helen Morrissey – our Head of Retirement Analysis. So, Helen, what are the key things that people need to be thinking about with their pensions as we get close to tax year end?

[8:25] Helen Morrissey: The major thing is to make sure that you’re making the most of your allowances. Depending on how much you earn, you can contribute up to £60,000 per year to your pension and receive tax relief at your marginal rate. This means that a £1,000 pension contribution would cost a basic rate taxpayer £800. If you pay tax at a higher rate, you’re getting even more value, as that £1,000 contribution is gonna cost you even less.

[8:56] Susannah Streeter: Tax relief is an absolutely massive incentive to save into a pension, isn’t it? Is it also the case that you can make even bigger contributions to your pension and get that tax relief if you have any leftover allowances from previous years?

[9:11] Helen Morrissey: You’re absolutely right. This is a process called ‘Carry forward,’ and means that you can make use of any leftover allowances from previous three tax years. This means that, this tax year, you can contribute up to £200,000 to your pension, as long as you earn at least this amount and had a pension in each year that you wish to carry forward from. This can be really useful if you have a fluctuating income – if you’re self-employed, for instance – and it can really help you to maximise your pension.

As we get closer to tax year end, people have a better idea of their earnings, and so they can make the decision to turbocharge their pension. But bear in mind that pension benefits do depend on your circumstances. Watch out if you’re a top earner – or if you’ve already accessed a pension – to check how much you can contribute to your pension. For some people, that allowance can drop to £10,000 per year.

[10:08] Sarah Coles: That sounds interesting – and, of course, you don’t have to just limit your pension contributions to yourself, do you? You can contribute for others too.

[10:14] Helen Morrissey: That’s right. You can contribute to a loved one’s pension – a spouse, or a child, for instance – and they can benefit from that tax relief boost.

[10:24] Susannah Streeter: How does that work?

[10:25] Helen Morrisey: So, you can contribute up to £2,8080 to the pension of a non-working spouse or child and they will get a tax relief top-up, bringing that contribution up to £3,600 per year. It can be a great use of family money if you’ve used up your own allowances, and it can be vital in helping people top up their pension saving during times when they might out of the workforce, caring for children, or other family members.

[10:52] Sarah Coles: And a contribution to a Junior pension could end up being a gift with more lasting impact than the latest toy!

[10:57] Helen Morrissey: I think so. Basically, you’re getting their retirement planning off to a flying start. Even putting in relatively small amounts every so often could make a real difference. Not only do they benefit from the tax relief the contribution is invested – and, over time, it will grow.

By the time they reach the age of 22, they could already be streets ahead while their friends are only just being auto-enrolled. I think it also acts as a great early introduction into investing – they can check in, see how it’s performing, and it could help spark a lifelong love of investment.

[11:33] Susannah Streeter: Thanks, Helen – I like the idea of a lifelong love of investments – because, of course, investments are the ultimate long-term commitment to investing. Currently, you can’t usually access your pension until 55 – and that age limit will go up before a child reaches retirement.

[11:51] Sarah Coles: So, on the subject of investing, we’re delighted to have Matt Britzman back on the podcast. So, Matt, you’re been looking at a number of companies, haven’t you?

[11:58] Matt Britzman: Yes – we have a collection of businesses here from a range of different sectors.

First up, we have Airbus – standing tall as a giant in aircraft manufacturing, locked in a tight race with its main rival in a market that’s tough to break into. Airlines are eager to refresh their fleets after years of holding back, which paints a bright future for Airbus.

But it’s not all smooth skies – supply chain hiccups are slowing things down, putting pressure on the company to deliver. Airbus is in a strong position, but it’ll need to steer carefully to keep its momentum.

[12:32] Susannah Streeter: Thanks, Matt. So, next up, a big pharma giant?

[12:36] Matt Britzman: Yes – next up, we have AstraZeneca – a leader in the world of medicine, especially when it comes to tackling serious diseases like cancer.

Its knack for getting new treatments approved has put it on a solid growth path, and it’s lineup of future drugs looks exciting.

That said, drug discovery is never a sure thing – and recent allegations in China have stirred some uncertainty.

[12:57] Sarah Coles: And what’s the third company on the list?

[12:59] Matt Britzman: Our third name is Unilever – a giant in the consumer goods market. It’s sharpening its strategy under fresh leadership by focusing on its strongest brands. It’s aiming to boost sales and streamline operations after a stretch of slower days.

Emerging markets are a big part of its longer-term growth story, offering plenty of untapped potential as more people buy into its products.

Unilever’s push for quality and efficiency sets it up for a brighter future than we’ve seen for some time, but there’s still work to be done – and, of course, nothing is guaranteed.

[13:30] Susannah Streeter: Thanks, Matt – and there’s a couple of names in the tech space

as well.

[13:33] Matt Britzman: Yes, that’s right – so let’s turn to the London Stock Exchange Group (LSEG).

LSEG isn’t just about trading stocks – it’s a key player in financial data and technology. Its wide-ranging services – from analytics to transaction processing – give it a sturdy foundation, even when global markets get shaky.

By doubling down on tech like cloud solutions, it’s tapping into growing demand for smarter financial tools.

Its global reach and forward-thinking approach means we see upside from here, but competition and regulations are hurdles.

[14:05] Sarah Coles: And, finally, let’s go from finance to the cutting edge of tech with Nvidia. Nvidia has certainly made the headlines recently – being caught up in the recent sell-off sparked by Trump imposing tariffs, which we did talk about earlier.

[14:16] Susannah Streeter: And, of course, it was also hit by fears surrounding the arrival of the Chinese low-cost AI model form DeepSeek. But, last year, it was one of the big beneficiaries of AI enthusiasm.

[14:28] Matt Britzman: That’s right – Nvidia is a powerhouse in the tech world, riding the wave of excitement around AI and advanced computing. We’ve already seen some of its biggest customers double down on investment in AI, which bodes well. Its technology is fuelling the latest advancements with the most powerful and versatile chips on the market.

But with big growth comes big questions – ‘Can demand keep pace with the hype?’ Whist it has been impressive, there’s pressure to keep delivering – and it will likely be sensitive to fluctuations in sentiment.

As you’ve mentioned, Sarah, we have seen volatility in recent weeks and the focus should be on the longer-term.

[15:03] Susannah Streeter: Thanks, Matt – certainly some interesting ones to watch there.

Of course, we have to remind people that investing in individual shares is higher- risk, so isn’t right for everyone. We haven’t given a view on the present or future value or price of any company, and investors should take the time to understand a company before investing.

Now, Emma Wall – our Head of Platform Investment here at Hargreaves Lansdown – has been looking at a number of funds too. So, Emma, what d’you have for us?

[15:35] Emma Wall: Hello, Susannah and Sarah. The team has chosen three fund ideas for

investors’ ISA allowances – the first being Artemis Income.

This is a more conventional UK equity income fund, given the focus on companies with robust cashflows. The managers focus on companies they believe can pay a sustainable level of income regardless of the economic backdrop. They mainly invest in large UK businesses, but they also invest in some medium-sized and overseas companies when they find great opportunities. It could help form part of the foundation of an income portfolio, diversify a broader global portfolio, or diversity the income paid by bond funds or a global equity income fund.

Investors should be aware that the fund takes its charges from capital, which can increase the yield, but reduces the potential for capital growth.

[16:24] Sarah Coles: What’s the second fund you’d like to highlight today?

[16:28] Emma Wall: Legal & General Future World ESG Tilted and Optimised Developed Index. This fund aims to track the performance of the Solactive L&G ESG Developed Markets Index. It won’t invest in tobacco companies, pure coal producers, manufacturers of armaments, or persistent violators of the UN Global Compact Principles. It invests more than the global stock market in companies that score well on a variety of ESG criteria, such as the level of carbon emissions generated and the number of women on the board. If companies score poorly on these measures, the fund reduces exposure.

It invests in around 1,400 global companies, focused towards sectors such as technology, pharmaceuticals, and financials.

An index tracker fund is one of the simplest ways to invest, and this one could be a good addition to a broader investment portfolio aiming to deliver long-term growth in a responsible way. The fund has a small amount of exposure to smaller companies, which are higher-risk investments.

[17:27] Susannah Streeter: What’s the third and final idea today?

[17:31] Emma Wall: The final idea for today is a more risk-averse one – Troy Trojan Fund. This total return fund tends to be more conservative than funds that invest fully in company shares. The managers aim to grow investors’ money steadily over the long run, while limiting losses when markets fall.

It invests in a mix of investments, including shares, bonds, commodities, and currency – and includes some of the world’s best-known companies with highly recognisable brands.

We think this fund could form the foundation of a broad investment portfolio, has the potential to bring some stability to a more adventurous portfolio, or provide some long-term growth potential to a more conservative portfolio.

The fund has the flexibility to invest in higher-risk, smaller companies – and, while the fund contains a diverse range of investments, it is concentrated, which is a higher-risk approach.

[18:17] Susannah Streeter: Thanks, Emma – it’s lovely to have you back on the podcast, and some interesting food for thought too.

This isn’t a recommendation to buy, sell, or hold any investment. Before making investment decisions, check the fund’s objectives align with your own, and make sure investments are held in a diversified portfolio. Ask for advice if you’re not sure what’s right for your circumstances.

You’re listening to Switch Your Money On from Hargreaves Lansdown – and, before we go, there’s time for a speedy fact of the week.

And this time, it’s all about spring cleaning – or cleaning, at least [laughs]! So, the Office for National Statistics calculates how long we spend doing unpaid housework – which is where cleaning falls – along with everything from walking the dog to repairing things. So, how many minutes a day do you think we spend doing it? – and I’ll let you have up to an hour either way.

[19:20] Sarah Coles: I’m gonna say about an hour-and-a-half?

[19:29] Susannah Streeter: You are too far away – it’s actually two hours and 21 minutes – and traditional household roles are alive and kicking because women do more of it than men. I’m sure that doesn’t come as much of a surprise.

That’s all from us for this time – but, before we go, we need to remind you that this was recorded on 10^th March 2025 and all information was correct at the time of recording.

[20:12] Sarah Coles: Nothing in this podcast is personal advice – you should seek advice if you’re not sure what’s right for you. Investments and any income they produce can rise and fall in value, so you could get back less than you invest, and past performance is not a guide to the future. Tax rules can change, and benefits depend on individual circumstances.

[20:25] Susannah Streeter: Yes – this is not advice or a recommendation to buy, sell, or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.

[20:35] Sarah Coles: And this hasn’t been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.

[20:41] Susannah Streeter: Non-independent research is not subject to FCA rules prohibiting dealing ahead of research. However, HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.

[20:53] Sarah Coles: You can see our full non-independent research disclosure on our website for more information. So, all that’s left is for us to thank our guests: Helen, Matt, Emma, and our Producer, Elizabeth Hotson.

[21:01] Susannah Streeter: Thank you very much for listening. We’ll be back again soon – goodbye!