Advising in the Age of Uncertainty, A 2025 Outlook

On 26 March 2025, Chancellor Rachel Reeves delivered her Spring Statement. She announced £3.4 billion in welfare reforms, part of a broader package that included £8.3 billion in social security cuts and new restrictions on daily public spending. The Resolution Foundation notes that most of the promised employment support won’t take effect until 2029–30, leaving many households facing a prolonged period of reduced income and higher costs. Just days later, on 2 April, former US President Donald Trump declared “Liberation Day,” introducing a 10% blanket tariff on UK goods. The FTSE 100 fell nearly 4%, and GDP forecasts for the year were cut in half.

These events have material consequences for how financial advisers engage with clients. The Office for Budget Responsibility now expects per capita GDP growth to remain under 1% for the third year in a row, a stagnation not seen in three decades. Rising interest rates and revised inflation forecasts have widened the gap between public borrowing expectations and actual receipts, leaving the government £49 billion short over the forecast period.

Broader economic ripple effects are already visible. Jaguar Land Rover paused US shipments following the newly imposed 25% tariff on foreign vehicles. In response, Prime Minister Keir Starmer announced adjustments to electric vehicle manufacturing targets, along with a reinstatement of the 2030 petrol and diesel car ban.

Further warnings came on 9 April, when the Bank of England’s Financial Policy Committee cautioned that Trump’s additional tariffs—and the broader threat of a global trade war—could damage financial stability by depressing growth. The FPC noted that the global risk environment had “deteriorated” and that uncertainty had “intensified,” particularly for an open economy like the UK’s, with its large financial sector. It stated that “the probability of adverse events, and the potential severity of their impact, has risen.” While markets remained orderly despite high volumes, the FPC warned that the risk of further “sharp corrections” remains high.

Advisers working in this environment face shifting client concerns. Market instability, policy reversals, and changing household economics mean clients are asking more questions, more often. But another real shift is happening behind the scenes. Suitability reports—the written records of adviser reasoning—are taking on greater significance.

Increased expectations around clarity, rationale, and compliance mean advisers must now explain their decisions more thoroughly, and in ways clients can understand. This pressure has led many firms to reassess how they handle documentation. Some have introduced tools like Automwrite to help advisers produce tailored reports more efficiently, supporting internal compliance standards and freeing time for client communication.

The Spring Statement wasn’t an isolated event. It coincided with warnings from the Resolution Foundation that growth in living standards is likely to remain weak, with higher taxes and reduced support placing further pressure on lower- and middle-income households. The Foundation also noted that most of the enhanced employment support will not take effect until 2029–30, leaving a prolonged period of income insecurity for many.

Against this backdrop, advisers must help clients interpret changes that often feel abstract but carry tangible effects, particularly for those near retirement or reliant on fixed income. Suitability reporting, in this context, is not just about documenting advice. It is about tracing the logic of that advice through economic headwinds, showing clearly how recommendations align with both client goals and the shifting external environment.

Firms that prioritise thoughtful, well-evidenced reporting are more likely to maintain trust and withstand scrutiny. And while software can help reduce the manual burden, it is the clarity and consistency of the message that ultimately matters.