'It's an ongoing sore point': Expert predicts exactly who John Healey's October 28 Budget will hit'

'It's an ongoing sore point': Expert predicts exactly who John Healey's October 28 Budget will hit' Chancellor John Healey will present his first Autumn Budget on October 28 with experts already predicting what areas will be targeted With just weeks to go to John Healey's first Autumn Budget many people are starting to wonder what effect it will have on their finances. So far Andy Burnham's chancellor has been predicted to target pension taxes, property taxes, and Inheritance Tax amongst a range of potential measures, affecting the financial futures of millions of Brits. But if the predictions are correct when they are made official on October 28, who stands to be the most impacted by any potential changes? To help explain which group is most likely to be affected, Antonia Medlicott, Founder and Managing Director of financial education specialists Investing Insiders , has broken down which policies hit hardest. Who the budget will hit the hardest Antonia believes it's not the wealthiest whose finances are most at risk on October 28. She said: “Some of the most common taxes and allowances to change with the budgets are those associated with pensions, Inheritance Tax, and upper bracket earners, so many think that it’s the wealthiest who are first to feel the changes. “However, this is rarely the case. The truth is that they often have advisers to help with their finances and some warning, meaning they’re often quite prepared for the changes. “In reality, it’s usually the “middle-class” that finds themselves the most affected. For those with modest private pensions, a paid-off house, and a good amount of savings tucked away, who wouldn’t typically consider themselves to be truly wealthy, the slow creep in taxes and allowances is actually dragging them into the rules surrounding what used to be saved for much larger estates." Frozen allowance Antonia says one of the key reasons for this is the frozen Personal Allowance. She explains: "Already frozen at £12,570 for five years, and planned to remain frozen until 2031, more and more earners are being pulled into higher tax brackets as wages increase, but the brackets and allowance fail to keep up with it." Pensions “Pensions are also an ongoing sore point," says Antonia. "From April 2027, unused pension funds will now fall under inheritance tax for the first time, marking a huge turning point in how IHT operates." She added: "Whilst these changes are geared towards targeting those with large leftover pension pots, AKA the wealthier population, it’s again those middle-earners that will be affected the most. The wealthiest will find ways to plan around these taxes and minimise the cost to their inheritance, while ordinary savers without the same resources get caught out.” Other areas Offering some hope for middle-earners, Antonia explained that Burnham and Healey may look to target other areas in the budget. She said: “The good news is that affordability seems to be one of the key priorities for Burnham’s government, potentially looking to ease the burden currently placed on middle-earners. "Rather than changes to income tax rates, National Insurance, or VAT, the focus seems to be on wealth-adjacent taxes, Capital Gains Tax, and Inheritance Tax reliefs. Burnham has also said he’s open to reviewing the Personal Allowance after the topic was raised to him during his by-election campaign, which has the potential to ease the tax burden on those for whom it would make the most difference. “Whilst we can only give our best guess as to what the future may hold for our finances under Burnham, the one thing we can say for sure is that it’s time for us all to get more involved with our finances, and do what we can to prevent getting caught out by any future changes."